singular_me
18th September 2017, 03:01 AM
lot to chew on here
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John McAfee accidentally just revealed why Bitcoin is a total fraud: Behold the logic of “artificial work”
Sunday, September 17, 2017 by: Mike Adams
In a recent CNBC interview that’s being widely touted by self-deluded Bitcoin promoters as some kind of “smack down” of JP Morgan CEO Jamie Dimon, Bitcoin advocate John McAfee accidentally admitted why Bitcoin is a total fraud that’s doomed to fail.
In answering Jamie Dimon’s recent declaration that Bitcoin is a fraud, McAfee replied: (see the video at The Daily Sheeple)
However, sir… you called Bitcoin ‘a fraud.’ I’m a Bitcoin miner. We create Bitcoins. It costs over one thousand dollars per coin to create a Bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because [the dollar] costs whatever the paper costs, but it costs me and other miners over a thousand dollars per coin – it’s called ‘proof of work.’’
...............
Behold the logic of artificial work: How John McAfee just embraced Paul Krugman’s ditch digging fable
The problem with John McAfee’s explanation, of course, is that it admits Bitcoins can only be created through the practice of computational wheel spinning operations where the difficulty and duration of such wheel spinning is artificially made needlessly complex by the Bitcoin algorithm. In a world where Bitcoins used to be created for less than one penny’s worth of computational work, a single Bitcoin now requires over US$1,000 worth of “artificial work” to be achieved. A rational person must ask McAfee, “Why did Bitcoins used to cost just a penny to create, and now they cost a thousand dollars?” The 100,000 X increase in complexity for generating a Bitcoin, it turns out, is an artificial work algorithm known as “computational difficulty” in mining...............
To produce artificial work, Bitcoin consumes enormous resources
Bitcoin’s “proof of work,” in other words, is nothing more than artificial work. Yet what is the real world result of such artificial work? While generating absolutely nothing that’s real in the real world — remember as Steve Quayle says, “If you can’t touch it, you don’t own it” — the Bitcoin mining process consumes enormous amounts of electricity, computing hardware and time. Yet in the end, there’s nothing to show for all that work except for carbon dioxide emissions and mercury pollution from the Chinese coal plants that power nearly a third of global Bitcoin mining. Bitcoin, in fact, has become one of the key vectors of environmental pollution that’s causing hazardous air in California’s cities.
McAfee claims that “artificial work” is actually “proof of work.” In reality, it’s proof of nothing more than the incredible stupidity of the mining infrastructure which is now burning more electricity than a city of one million people just to keep the Bitcoin blockchain from collapsing.
“Surely there’s some value in the work that we did to create the coin,” McAfee stated. But actually, there isn’t any real-world value in it at all. Bitcoin is a digital fiat currency backed by nothing, and all the “work” used to create Bitcoins is actually “artificial work” that’s made artificially complex for no logical reason other than a crude mechanism for artificial scarcity. Yet even that scarcity is a complete failure, since any person can create and launch their own cryptocurrency alongside Bitcoin, instantly creating a massive new supply of crypto coins that flood the marketplace. (And many newer cryptos are vastly superior in design to Bitcoin. For example, Z-cash…)
LONG/VIDEO
https://www.naturalnews.com/2017-09-17-john-mcafee-accidentally-revealed-why-bitcoin-is-a-total-fraud-behold-the-logic-of-artificial-work.html
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“I would like to say this, Mr. Dimon: I respect you, sir, for your position. People who rise to your position are not idiots,” McAfee began. “However, sir…you called Bitcoin ‘a fraud.’ I’m a Bitcoin miner. We create Bitcoins. It costs over one thousand dollars per coin to create a Bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because [the dollar] costs whatever the paper costs, but it costs me and other miners over a thousand dollars per coin – it’s called ‘proof of work.’”
McAfee then went on to explain the amount of computing power and electricity that goes into creating the digital currency. “Surely there’s some value in the work that we did to create the coin,” he said, also pointing out that Bitcoin’s fluctuating value is nothing to sound the alarm over. “The fact that Bitcoin is consistently growing in its use and its value has to say something. You know, sure it will rise and fall and it is highly volatile, as all new technologies are. At the same time, it is certainly not a fraud,” he said.
When Fast Money’s host asked him about his infamous Twitter bet that Bitcoin will surpass $500,000 in three years, McAfee simply replied, “Oh, I don’t lose bets.”
We hope not, Mr. McAfee.
Delivered by The Daily Sheeple
==========================
John McAfee accidentally just revealed why Bitcoin is a total fraud: Behold the logic of “artificial work”
Sunday, September 17, 2017 by: Mike Adams
In a recent CNBC interview that’s being widely touted by self-deluded Bitcoin promoters as some kind of “smack down” of JP Morgan CEO Jamie Dimon, Bitcoin advocate John McAfee accidentally admitted why Bitcoin is a total fraud that’s doomed to fail.
In answering Jamie Dimon’s recent declaration that Bitcoin is a fraud, McAfee replied: (see the video at The Daily Sheeple)
However, sir… you called Bitcoin ‘a fraud.’ I’m a Bitcoin miner. We create Bitcoins. It costs over one thousand dollars per coin to create a Bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because [the dollar] costs whatever the paper costs, but it costs me and other miners over a thousand dollars per coin – it’s called ‘proof of work.’’
...............
Behold the logic of artificial work: How John McAfee just embraced Paul Krugman’s ditch digging fable
The problem with John McAfee’s explanation, of course, is that it admits Bitcoins can only be created through the practice of computational wheel spinning operations where the difficulty and duration of such wheel spinning is artificially made needlessly complex by the Bitcoin algorithm. In a world where Bitcoins used to be created for less than one penny’s worth of computational work, a single Bitcoin now requires over US$1,000 worth of “artificial work” to be achieved. A rational person must ask McAfee, “Why did Bitcoins used to cost just a penny to create, and now they cost a thousand dollars?” The 100,000 X increase in complexity for generating a Bitcoin, it turns out, is an artificial work algorithm known as “computational difficulty” in mining...............
To produce artificial work, Bitcoin consumes enormous resources
Bitcoin’s “proof of work,” in other words, is nothing more than artificial work. Yet what is the real world result of such artificial work? While generating absolutely nothing that’s real in the real world — remember as Steve Quayle says, “If you can’t touch it, you don’t own it” — the Bitcoin mining process consumes enormous amounts of electricity, computing hardware and time. Yet in the end, there’s nothing to show for all that work except for carbon dioxide emissions and mercury pollution from the Chinese coal plants that power nearly a third of global Bitcoin mining. Bitcoin, in fact, has become one of the key vectors of environmental pollution that’s causing hazardous air in California’s cities.
McAfee claims that “artificial work” is actually “proof of work.” In reality, it’s proof of nothing more than the incredible stupidity of the mining infrastructure which is now burning more electricity than a city of one million people just to keep the Bitcoin blockchain from collapsing.
“Surely there’s some value in the work that we did to create the coin,” McAfee stated. But actually, there isn’t any real-world value in it at all. Bitcoin is a digital fiat currency backed by nothing, and all the “work” used to create Bitcoins is actually “artificial work” that’s made artificially complex for no logical reason other than a crude mechanism for artificial scarcity. Yet even that scarcity is a complete failure, since any person can create and launch their own cryptocurrency alongside Bitcoin, instantly creating a massive new supply of crypto coins that flood the marketplace. (And many newer cryptos are vastly superior in design to Bitcoin. For example, Z-cash…)
LONG/VIDEO
https://www.naturalnews.com/2017-09-17-john-mcafee-accidentally-revealed-why-bitcoin-is-a-total-fraud-behold-the-logic-of-artificial-work.html
=============
“I would like to say this, Mr. Dimon: I respect you, sir, for your position. People who rise to your position are not idiots,” McAfee began. “However, sir…you called Bitcoin ‘a fraud.’ I’m a Bitcoin miner. We create Bitcoins. It costs over one thousand dollars per coin to create a Bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because [the dollar] costs whatever the paper costs, but it costs me and other miners over a thousand dollars per coin – it’s called ‘proof of work.’”
McAfee then went on to explain the amount of computing power and electricity that goes into creating the digital currency. “Surely there’s some value in the work that we did to create the coin,” he said, also pointing out that Bitcoin’s fluctuating value is nothing to sound the alarm over. “The fact that Bitcoin is consistently growing in its use and its value has to say something. You know, sure it will rise and fall and it is highly volatile, as all new technologies are. At the same time, it is certainly not a fraud,” he said.
When Fast Money’s host asked him about his infamous Twitter bet that Bitcoin will surpass $500,000 in three years, McAfee simply replied, “Oh, I don’t lose bets.”
We hope not, Mr. McAfee.
Delivered by The Daily Sheeple