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Bitcoin Miners are having tough times in different locations around the world, as we saw in the last couple of weeks china decided to close mining operations and even close down financial businesses that give crypto services.
These new policies concerned a lot of people, fuelling the crash that we saw with all the liquidations that followed. One characteristic about miners is that they can move pretty easily, in fact, I think that even if they are facing hard times now they are already looking for alternatives to come back online to secure the bitcoin network.
Considering the fact that most of the shutdowns are driven by the fossil fuels narrative I expect that as soon as they will debunk it everything will come back to normal.
On contrary there are some problems caused by miners in Iran, where cities had several energy outages due to the energy consumptions of miners, that is something I believe should be fixed, and in fact, the Iranian government decided to suspend mining activities till September, and offered a reward of over 800$ to those who come forward with a successful tip about illegal mining in the country.
MINING ENERGY IS WASTED ENERGY
The first thing you will hear about the energy used by miners to secure the network is that is wasted energy. In fact, not too many people perceive it as a necessary cost to secure a global payment/store of value system. Many people only focus on the dirty energy that is used failing to recognize what it actually does for everybody.
I believe that to perceive value in what's going on in the mining world someone has to understand what bitcoin is trying to achieve. To keep the story short, bitcoin provides a new payment system and a new store of wealth system that cannot be controlled by governments. See, This step is fundamental to comprehend the importance of bitcoin.
I am not suggesting that it will rule the world, that it will become the world reserve currency, or that it will eat gold's capital, making it plunging near 0. What I am saying is that in history we didn't have an asset like bitcoin that was scarce, transferable through space, easily divisible in 100 million parts, and indestructible, it's still fighting for wider acceptance but once we get there we will have an asset that is what is usually known for hard money.
I come from Italy, and in my country 24 years ago we had a pretty bad economic situation, my government then decided to take a small percentage of people's savings to face the crisis. This is why I personally see in bitcoin something that is extremely useful for people. Because no one can touch it, no governments can come and decide to take a slice of your bitcoin. No government can decide to inflate the value of bitcoin to stimulate the economy.
We could discuss the energy that banks use to make our financial system work and compare it to bitcoin, we could even talk about how much energy we use to extract gold and compare it to bitcoin, but by doing these people will always divide arguing about why they are on the right side.
What I want to do instead is to bring to the surface something that I believe is fundamental to agree that the energy used to secure a network that millions of people are using is not wasted.
WAR
In history we had so many wars that we cannot remember them all, now we have populations that are still in war, they kill each other and kill innocent people. The lives of all the families that live in those territories are just ruined. For centuries nations tried to create a good narrative around why they were going to war, Hitler did that too, and in my opinion, this is what they don't get.
To me, this is the most wasteful way to use energy, bombs, guns, tanks, military planes, rockets, machine guns, LIVES! This is the cost of war, and it costs so much that only because a small number of people decide that this is what has to be done, the majority suffer their decisions. Innocents die.
Bitcoin is the exact opposite, Bitcoin gives people services, bitcoin gives people a way out, bitcoin gives people the power to choose.
THE FUTURE
No one can say what will happen in the future, but something is for sure, they will try as much as they can to stop it, it undermines their power to control the currencies, the economy, and therefore our behavior.
But one thing is for sure, in this space, there are the smartest people in the world there are working to improve the system, and a lot of other people are sustaining it.
One thing is for sure, every time someone brings the energy argument I always ask them to tell me if is it bitcoin or the war that wastes more energy, and they all reply the same thing.
Mattia
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