Bitcoin FUD – 5 allegations, the hearing is a Bitcoin Hodler

the You know the. A cosy Pils in the pub at the corner of the trust which falls suddenly to a word you wanted to avoid during the crypto winter so fond of Bitcoin. And once it breaks the only way a. Phrases like "Bitcoin is dead?" "Recently, I have heard that Bitcoin consumes a lot of electricity" or "Is the Darknet currency?", immediately accusing you.

David-separator
9. March 2019BTC$3.922,86 0.50% part Facebook Twitter LinkedIn xing mail

We want to dispel Fear, Uncertainty and Doubt (FUD) and provide you with appropriate answers, to the casual parrying of all the unsubstantiated allegations against the Ecosystem.

1. Energy consumption

Bitcoin is bad because the power consumption is too high.

The BTC network consumes, in fact, quite a lot of power. The annual consumption moves in the spheres of whole nation-States. The crypto-currency no 1 consumes about as much power as Portugal. Expressed In Figures: The accumulated power consumption corresponds to about 49 terawatt hours and 49 billion kilowatt-hours. The are a whopping 0.22 per cent of the annual total electricity consumption on the planet earth.

Sounds like a lot, it also. However – and this part of the equation, one must not disregard is the power consumption of a means to an end. The Proof-of-Work algorithm to cut value – because nothing else Bitcoin-transactions – literally in (digital) stone. With each new Block, the network integrity increases; the log changes of the past transactions carried out with such a high cost of not performing that, this kind of attack is worthwhile. The larger the network is, the more energy-intensive the backup is.

The question of whether Bitcoin consumes too much power, but only on the basis of a cost-Benefit analysis to answer. For the backup of a global, censorship-resistant currency, Bitcoiners would argue, one must consume a calm energy. Especially since most of it comes from renewable energies.

However, it must not be ignored: There is an energy problem. And this is global. This requires complex approaches to a solution and the best possible engagement with the topic. (An approach here.)

2. Darknet

Is not Bitcoin, this Darknet currency?

Yes, with Bitcoin you can buy illegal things on the Darknet. In truth, the Bitcoin is negligible-the volume of trade on the Darknet market places, however almost. Although the Darknet to set dealer daily about two million dollars in Bitcoin, the equivalent of only 0.35 percent of the total transaction volume in the Bitcoin network. This is evident from a recent report of Chainalysis.

3. Money laundering

Bitcoin is anonymous, so it is super easy to make money wash.

There is hardly a Medium for money laundering in such a way is inappropriate, such as Bitcoin. Finally, Bitcoin is not anonymous, but pseudonymous. Although the transmitter and receiver of transactions are not with your real name on the Blockchain, but there are always examples where authorities were able to restore the connection between the real Person and Bitcoin address. Once that is done, you can keep track of every transaction for all eternity.

criminal offenses such as money laundering and tax evasion can be easy to clear up. Therefore, even cash promises a higher degree of anonymity as the crypto-currency no 1. By the way: the Bulk of money laundering in the traditional financial sector unwinds. Messages such as the alleged money laundering activities of Deutsche Bank are only the tip of the iceberg.

Long bitcoin short the banks