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@ Ramona Flowers
2025-02-19 19:00:54
Bitcoin has been promoted as the ultimate solution to fiat money problems. Its supporters see it as the "salvation of humanity," but a more critical look reveals a less hopeful reality. Throughout this analysis, we will break down its fundamental issues, from its disproportionate energy consumption to its exclusionary system that favors only a few.
**1. Bitcoin and Its Irrational Energy Consumption**
Bitcoin uses a system called Proof of Work (PoW), in which miners solve extremely complex mathematical problems to validate transactions. This process:
Consumes more energy than entire countries, such as Argentina or the Netherlands.
Generates no tangible value outside the Bitcoin ecosystem.
Has a significant environmental impact, as many mining farms rely on fossil fuels.
If Bitcoin's goal is to replace fiat money, is it sustainable for each transaction to consume so much energy?
**2. Creation Limit: Is Bitcoin Really for Everyone?**
Bitcoin has a fixed limit of 21 million coins, which creates two problems:
Early adopters hold most of the supply. Today, a small percentage of addresses control most of the Bitcoin supply.
It becomes increasingly difficult to acquire. Latecomers can only buy at inflated prices.
Given that the world's population is 8 billion people, if Bitcoin were distributed equally, each person would have only 0.0026 BTC on average. But in reality:
Millions of Bitcoin are permanently lost.
Wealth concentration follows the same pattern as traditional currencies.
**3. Bitcoin Is Not Practical as a Currency**
Although Lightning Network and Nostr have made transactions faster and cheaper, Bitcoin’s structural problems remain:
Highly volatile. How can you trust a currency that can gain or lose 50% of its value in weeks?
Low real-world adoption. Even in El Salvador, where Bitcoin is legal tender, most people still prefer the US dollar.
Service centralization. Despite being marketed as decentralized, many users rely on platforms like Binance or Coinbase.
**4. Blockchain: Revolution or Overhyped Technology?**
Blockchain is often touted as a game-changer, but in practice:
Traditional databases are more efficient and faster.
Decentralization is partially a myth. Large holders and mining pools control the network.
Few real-world use cases outside of cryptocurrency. Many companies that tested blockchain have returned to conventional systems because they are cheaper and more functional.
**5. The End of the Cycle: What Happens When All Bitcoin Are Mined?**
When the last Bitcoin is mined in 2140, miners will only earn from transaction fees. This raises two scenarios:
If fees are low, miners may abandon the network due to lack of incentives.
If fees are high, Bitcoin will become too expensive for most users.
**Conclusion: Is Bitcoin Salvation or the New Digital Oligarchy?**
Bitcoin does not democratize wealth; it simply redistributes it to a new digital elite. Although its advocates present it as an alternative to fiat money, its exclusionary structure and dependence on large players make it replicate the same inequalities as the traditional financial system.
If we truly seek a fair financial solution, is Bitcoin the right path or just another way to concentrate power in the hands of a few?