Beet
Atlas Star
Posts: 28,989
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« on: October 10, 2011, 11:19:27 PM » |
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Bitcoin advertises itself as being a "decentralized" digital currency. Bitcoin deceptively advertises itself as being generated by "anyone" running a "free application." What bullsh-t.
In reality, bitcoin mining requires thousands of dollars in investments in specialized processing centers, and cost-effective mining is only available to those with a large amount of Federal Reserve Notes as well as time and expertise.
In reality, the processing centers are in turn controlled by a few unelected, centralized pool operators who earn money through transactions fees, much like banks. An individual "mining" operating using bitcoin's free software will take decades to even return a single result (50 bitcoins).
In reality, the more successful bitcoin is at replacing legal tender, the more incentive there is for the early mining bosses to hoard their coins. The problem is not the bitcoin concept, it is the design. In the end, the only effective result is to redistribute wealth and power away from institutions that, although centralized, are at least accountable in some way to democratic forces, to private interests wholly unaccountable.
Additionally, even bitcoin FAQ's admit that the currency is vulnerable to a deflationary spiral.
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