Comment on Meta shareholders overwhelmingly rejected a proposal to explore adding Bitcoin to the company's treasury, with less than 1% voting in favor of the measure

• infinitesunrise@slrpnk.net ⁨3⁩ ⁨weeks⁩ ago

  Alright, well in the spirit of you not thinking it’s a scam and merely listing why others may think it is, I guess I’ll respond to your compiled list.

  the proof of work aspect encourages miners to keep adding more hash rate to the network so long as it is profitable to do so and not whether the network actually needs it. It takes crazy amounts of energy for simple transactions.

  TL;DR I think this is a valid argument. But let’s break it down to really know what we’re saying. If you take the estimated global mining power of 175 TWh at an average 3,000 transactions per block, it works out to 1.1 MW/transaction. Which is a ton, easily arguable as far too much. The problem with this argument are IMO threefold:

  1. It ignores sidechains like lightning, a federated network that handles the majority of small bitcoin transactions. Anecdotally speaking, most purchases of goods and services that I’ve ever made in bitcoin (Mostly software and game passes, a few coffees) have been via lightning. Potentially billions of lightning TXs can tether behind a single on-chain transaction. I do not believe lightning processes this level of volume today, but as it’s an immeasurable federated network it casts heavy doubt all power estimates. I would not be surprised if the radio of side-chain to on-chain BTC transactions is already 100:1. Which is still too much but…
  2. …The power argument gives a free pass to even more expensive proof of works that already exist, which are normalized enough to us that we do not think of them as the proof of works that they are. What is the single largest consumer of energy on the planet but an energetic protection of the value of the USD? There is a reason that the US military is several times larger than the next 9 world militaries combined, and it is not territorial expansion or defense. I’m not naive enough to think that a deflationary currency can stop a nation state from committing military violence on a mass scale so long as it wants to, but every time I hear that “proof of work is a waste” I get frustrated at what I see as misdirection.
  3. Mining intensity plateaus over the long term due to several factors. Decreasing block rewards, regulatory catchup, and industry crowding put a cap on participation. The one and only force pushing back against these weights is increasing bitcoin value, which itself plateaus over time or at least S-curves off. When the price spikes, you are right that miners respond to the profit incentive by growing. But these spikes become less pronounced year over year, and with them the industry has already begun to level off. It’s growth is not exponential like some believe, and certainly not runaway.

  Proof of stake algorithms (like Ether) is just a plot for the rich to get richer and favor early adopters who have more coins.

  I agree with this. I feel that PoS breaks the holistic system that bitcoin’s whitepaper outlines. But Etherium is not Bitcoin, and I would not bother arguing for it’s sake.

  It’s controlled by technology and not laws and can’t be fixed.

  Just plain wrong. We have plenty of very strict laws that control software use. We can and should have laws surrounding bitcoin use, especially ones that pertain to steering the mining industry and taxation.

  Someone stealing it is more likely to get away with it because it’s not like a company can just revert fraud.

  Conditionally true. If the thief is in Russia or one of a handful of other nations that stand contrary to global financial regulation, then yes it would be relatively easy for them to get away with it. But outside of those jurisdictions it would be a matter of time before a motivated law enforcement agency tracked them down, as just about all on/off ramps are now regulated and value movement can be tracked along a chain of wallets - Including tumblers / mixers! - On the public ledger. Still conditional though, because the fund could be spent long before the thief is caught. This is one of the main reasons why I think multi-sig wallets are going to become the norm over the next decade.

  it doesn’t hold value. Stocks do hold value because you own a portion of that company and if they don’t reinvest their profits you get dividends. Money does hold value because even in the absence of a gold standard we’ve been using it long enough that it’s so ingrained in everything and everyone agrees it has value. Money has value in that the massive amount of financial regulations surrounding it creates a more stable value. Not everyone agrees crypto has value. Crypto is hardly regulated. Crypto wildly fluctuates in price.

  IMO this argument is completely vapid, and illustrative of my main gripe about the way that people criticize bitcoin. Bitcoin is money, all of the arguments made for “money” that you relay here can be made for bitcoin, and the fact that bitcoin is money is not a strength, it is the one single ACTUAL heavyweight criticism that can and should be leveled against bitcoin. But suddenly when it’s time to argue against bitcoin, all the leftists suddenly transform into liberals. Arguing against bitcoin from the position of defending money, rather than arguing against money, including bitcoin, on the basis that not only is bitcoin money but that it is accelerated, hyper-financialized, straight-into-your-veins money that intensifies all the typical immiseration of workers that capitalism already did! I can’t believe that people actual argue that “bitcoin isn’t money and that’s why it’s bad” instead of “bitcoin is the most money that ever did money and THAT is why it’s bad”!

  it is often used in scams and makes it easier for scammers to be anonymous and lock down funds they steal.

  Merh, I don’t find this argument compelling. I really don’t think that most scammers are anonymous or need to be. Most of the scams I see in the world are right out there in the open. The scammers are out there pushing their scams with their real faces. Crypto as a whole does attract scammers. But again, most of them have known names and addresses.

  Anyway, since these aren’t necessarily all your arguments I’d be interested to see how your own opinions of them compare to mine. My fingers are sore, that was a lot of typing.

  source