Quote:
Originally Posted by MartinSE
One they are 100% untraceable. And two, they disempower banks. A lot of people see banking as "evil". I am not taking a side, just repeating what I have read. It will be interesting to see how it goes. My biggest problem with Bitcoins is that the farms use hellish amounts of energy, most of which is in China and produce using coal. Not good.
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There are a couple things you've got wrong here.
1. Bitcoin transactions are 100% TRACEABLE. All the way back to the first coin. This is what is called an open ledger. If I know your wallet addresses, I can find every movement of every coin, into and out of your wallet for all time. You cannot hide it. It's very easy to see as well as there are large, free websites that will give you all that information.
Transactions can be obfuscated with tools, but what those tools do take large quantities of coins and dump them into a blender, mix them with other stuff and push out small amount. Again, if I know your wallet address, I can watch it all happen, pretty much in real time.
As far as energy usage goes, if it cost $100 to use a bitcoin, the fees would prohibit usage. There are around 500 "transactions" i.e. You bought a cup of coffee, in a block confirmation. Each block may cost around $100 so your cup of coffee cost a 20 cent fee.
There are other crypto currencies that confirm blocks for much less than bitcoin. On the Solana chain for example, block confirmations are in the hundredths of a penny.
Finally, how much do you think traditional finance costs? When you do the actual comparision, bitcoin transactions are a bargain. How much energy does every bank use? It dwarfs bitcoin, around 800 to 1. No building to run, no lights, no AC, no heat, no people driving to it, on and on and on.
If you don't want to use bitcoin or any cryptocurrency, don't.
The Federal Reserve in the process of building their own Fedcoin. I don't know what it will be called, but it's a CBDC(Central Bank Digital currency). Children born today will not understand why you ever had to go to a building somewhere in town to get money. It will all be some form of a Blockchain(which is what Fedcoin will be) and it will all bear some resemblance to bitcoin(in function essentially) except that Fedcoin will be centralized instead of distributed.