Why Bitcoin is Doomed

When it comes to the ravages of time and the ultimate destruction of all things, the only distinction is that some things decay faster than other things. Some things decay so slowly that we can ignore the process altogether, while other things decay so quickly that they are almost immediately rendered worthless unless resources are employed to keep the deterioration at bay.

Gold is an example of something that decays so slowly that it can be completely ignored. A fish, on the other hand, will decay in a matter of hours unless it is put into a freezer. Yet even a fish is better than Bitcoin in this respect, because Bitcoin will decay in a matter of milliseconds if electricity is turned off. Furthermore, the computers on which Bitcoin depend are themselves in constant need of maintenance, repair and replacement. The life span of a typical computer is no more than ten years.

This adds up to a considerable cost that has to be shouldered by the Bitcoin community. It is therefore incorrect to label Bitcoin a store of value. It is a consumer of resources in much the same way that a fish is a consumer of resources as long as it remains unsold. However, unlike a fish, Bitcoin will never itself be consumed. It is a perpetual drain with no ultimate purpose.

While this can go on for a long time, it will not go on for ever. The constant diversion of resources from consumption to mere preservation is no way to live a life. People will give up on Bitcoin in favor of moneys that do not require energy to keep alive.

By Marco Krohn - Own work, CC BY-SA 4.0, Link