“Bitcoin is chaotic"
By: H. Verma
Tags: Coal, Bitcoin Mining, Gold, Bitcoin, Ethereum

“Bitcoin is chaotic"

A person millionaire by luck and a poor broke by luck, both are fools on the same scale. H. Verma Jun 22·3 min read

I ask my dad to invest some money in crypto: the new currency of the new era we say, as it was once said ‘there will be flying cars in 2020’. I see none over my head, but unlike those hybrid vehicles, crypto especially Bitcoin, Ethereum and Ripple seem to have a future ascending to be international currency.







Among the popular ones, bitcoin is a chaotic beast with an infinite hunger of coal. Yet it held an average market cap of 1,000 billion U.S dollars or nearly 70 trillion Indian rupees in May 2021 with a limited existence of 21 million in total, out of which approximately 2 million is still resting in mines.

Mining:







Mining is a common trait among all the crypto. Say, whenever you make a transaction or an exchange of bitcoins , a complex algorithm is ignited unseen from your eyes. Somewhere on this planet, a sprint among the intelligent of intelligent computer systems takes place to solve this algorithm - not as easy as paying cash. These systems are ‘Mines’, ran and maintained by miners. As soon as the calculation is complete and you receive a notification, systems have already wasted a ton of electricity. Only the winner system, in turn, receives a few bitcoins as a reward.

Ethereum and ripple on instance, takes out a lucky draw of the registered mines and let the winner take the hold, less energy is wasted this way.







My dad asks did the bitcoins gobble such energy from the beginning?







No, as we get closer to the final bitcoin that is assumed to be mined in 2154, the algorithms will keep on complexing bit by bit and so does the energy intake.

High volatility:







Unlike stocks, crypto has no real value, and its worth is incalculable, criteria like certain VIX and centralisation doesn’t exist. With no such picket, Bitcoin’s presumed value drifts the highest and lowest curves on the graph. It is the artificial descendant of gold: more the demand, higher the price.







For some good traders in the game and for some with silver in their stars, Bitcoin is a jackpot. But not for everyone.







The stories of young crypto billionaires floating on the internet can easily influence majority of less knowledgeable people. To them this mirage is tempting to lay out money on. So, in turn their biased investments possibly implode.







Yes, exceptional cases exist, but here a person millionaire by luck and a poor broke by luck, to me both are fools on the same scale.

Transaction delay:







If Bitcoins were to be established as an international currency, on top of all it can’t be because of its high volatility, but if it were exceptionally than a payment to buy a smoke would take minimum 10 minutes and nearly a month of your house’s electricity.







I would prefer sanitized cash or Paypal over this decentralized, peer to peer, 1000 billion market capped, overly hyped international currency.







Ripple on contrast, with a 4 second process period can be considered if there’s no additional fees deduction by badger exchange apps.

Dark web:







UPI and net banking are definitely the most exposed transaction methods on internet but not so promising on dark web: the rotten hub of illegal activities beneath the surface network.







If I surf the dark web ,buy drugs and deal through UPI then the seller will end up tied in the same handcuffs as me. The centralised network of these online transactions deploys entire history to the authorities but since 2011 after Bitcoin’s evolution simplicity and anonymity walk hand-in-hand on dark web. Any person can buy drugs or weapons using crypto, Which I don’t recommend as the possibility lies of you getting swindled or arrested.







For heavy exchanges Bitcoin poses the throne in these markets, which if used in our surface world will only create chaos.