Criticism of Bitcoin. What cryptocurrency critics say

If something was missing from Bitcoin to become an object of hatred, it was George Soros, the favorite villain of the conspirators, deciding to invest in the cryptocurrency. At the time of writing this, March 10, Bitcoin registered a cumulative rise of 12% between yesterday and today, reaching a price of $ 57.000, approaching the maximum of USD 58.000 on February 21..

Part of the rise had to do with New York Digital Group (NYDIG) completing a $ 200 million growth capital round. The eight strategic partners that will invest in the provider of technological solutions and investments for Bitcoin include companies such as the financial multinational Morgan Stanley and Soros Fund Management, along with Stone Ridge, Holdins Group, and MassMutual, among others.

Criticism of Bitcoin

But, it is not the success of Bitcoin or the presence of Soros and other referents of Capitalism the only reasons that attract criticism of Bitcoin. Environmentalists also have something to say.

As its price rises, energy consumption also increases. It is estimated that the mining of Bitcoin consumed t 129.1 TWH, 0,1 more than all of Argentina than in 2019. Its carbon footprint, meanwhile, was the same as that of New Zealand. Each Bitcoin transaction consumes as much as 700 thousand bank card transactions.

Power consumption is inherent in the design of Bitcoin.

The generation of the cryptocurrency is based on a proof of work (POW) algorithm. To mine bitcoins, the miner is required to find the solution to a cryptographic problem. and that the resolution is verified by the network.

Each time the problem-solving capacity becomes more efficient, the network adapts automatically, increasing the difficulty of the problems to be solved. The energy consumed is proportional to the market value of Bitcoin. If the price increases, new miners are added and the computing power increases. Immediately also increases the difficulty of the problems. Power consumption skyrockets.

Not suitable for the real world

Another criticism made of Bitcoin is that it dAfter 10 years it has only marginal utility in the real world.

According to some detractors, Bitcoin is used exclusively for speculation and this is because it suffers from several technical limitations that prevent its use as normal currency.
Among those limitations are

  • Hard limit of 7 transactions per second, for everyone.
  • All transactions are public.
  • Price of this currency is too volatile for anyone to consider it a non-speculative investment.

Not all that glitters is green

Some Bitcoin miners respond to criticism from environmentalists saying that They only work with renewable energies, but it seems not to be enough.

Although they are less carbon intensive than other energy sources, lRenewable energies continue to also have their ecological impact. They consume a huge amount of materials (concrete, metals) whose extraction is in itself polluting.

And, in any case, the supply of renewable energy is not constant enough to avoid having to resort from time to time to traditional sources of supply.

Things can get ugly. There are those in the networks who are proposing to generate computer attacks to undermine the confidence of investors. And they don't do it on the Deep Web, but on established platforms. Those where they censor democratically elected presidents while allowing dictators to express themselves.

For obvious reasons, I am not going to put links, but they are available to the editors of Linux Adictos if you want to check the veracity of this article.

The blockchain technology where transactions are stored is impossible to attack. That is why actions would focus on its centralized and vulnerable interfaces, or saturate the network with fake transaction flows

Another possibility is to target mining pools or online wallet services.

According to the ideologue of the Anti Bitcoin plan

Bitcoin networks only handle 400.000 transactions a day and are sized accordingly. It is possible to generate between 10 and 100 times more false transactions, syntactically correct but coming from empty wallets, or presenting multiple expenses of the same bitcoin, or back and forth between financed wallets, but without paying fees. These transactions will never be validated by the network, but could easily overwhelm it and render it inoperable.

Since since neither me nor Linux Adictos we validate this type of attacks. But, it is impossible to inform Bitcoins users of the possible risks without describing them.


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