Articles

Why Bitcoin Is Not Working

November 2, 2019


Currency, in its many forms, has been part
of human civilisation for thousands of years.
A natural evolution of trade from the the
arduous process of bartering, where traders
needed to find an equivalent exchange of goods
to complete a transaction.
The advent of metal coins, which had a known
and reliable value, allowed trade to flourish.
It facilitated the diversification of jobs,
and even invented a new one, the banker.
As trade flourished, and coins were minted,
the wealthy needed a secure location to keep
their money safe.
Banks became common place, where vasts amount
of money was stored, and the responsibility
of keeping track of it fell into the hands
of these bankers.
The banker could facilitate trades between
people, without the physical coins, from which
the currency gained its value, ever needing
to be seen.
This evolved to the world we now know where
electronic and paper money is commonplace,
a system based on trust.
Trust that this money has intrinsic value,
trust that became tarnished by the global
financial crisis where bankers created excessive
amounts of another new form of currency debt,
a currency based on assumed future earnings.
When this system fell apart with the crash
in property prices, many ran back to the tried
and true method of using gold as a safe and
reliable currency, resulting in the prices
peaking at the height of the crash, but one
clever individual started to wonder is there
are better way.
That person was allegedly “ Satoshi Nakamato”
the mysterious founder of the first cyptocurrency,
Bitcoin.
Satoshi released this statement conveying
his motivation for creating bitcoin:
“The root problem with conventional currency
is all the trust that’s required to make it
work.
The central bank must be trusted not to debase
the currency, but the history of fiat currencies
is full of breaches of that trust.
Banks must be trusted to hold our money and
transfer it electronically, but they lend
it out in waves of credit bubbles with barely
a fraction in reserve.
We have to trust them with our privacy, trust
them not to let identity thieves drain our
accounts.
Their massive overhead costs make micropayments
impossible.

Cryptocurrencies were invented primarily to
eliminate the banking system middle men from
this trust system.
To ensure the security of people’s hard earned
money and allow for cheap accessible transactions.
A beautiful idea, that in practice has its
flaws.
In order to eliminate these middle men, we
need to find a way of creating a trust system
between individuals using the currency.
A way of ensuring that someone cannot simply
write a transaction crediting their account
with bitcoin, without permission.
This is where the blockchain comes in.
In its purest form, Bitcoin is a currency
that uses a system of complicated keycodes
to verify transactions between individuals.
Batches of transactions are filed into something
called a block every 10 minutes.
For bitcoin the max amount of transactions
per block is around 2,400, so bitcoin has
a max transaction speed of 4 transactions
per second.
Each of these blocks needs to be verified
in order to verify the transaction history
and cryptocurrencies do this in a pretty surprising
way.
By guesswork.
Bitcoin uses a system called a cryptographic
hash function, in this case Sha-256. to verify
each block and it works like this.
SHA-256 simply outputs a string of 256 bits,
that’s a 256 long string of 1s and 0s, for
a given input.
The output seems random, but it’s not.
SHA-256 will always give the same output for
a given input, BUT, as far as we know, it’s
impossible to take the output and figure out
what the input was.
It’s a one way street.
That means, in order to generate a specific
desired output, the only way of doing it is
by trial and error.
Guessing inputs and checking the output.
And to do this quickly requires a significant
amount of computational power.
Essentially employing millions of little monkeys
in your computer to type numbers until one
manages to get it correctly.
So how does this apply to the blockchain verification
of Bitcoin?
For a block to be added to the chain it needs
to be signed with a SHA-256 input that will
result in a predetermined string of zeros
at the start.
The number of zeros needed is determined by
how much computational power is trying to
verify the blockchain.
The more zeros needed, the more computational
power is needed.
We want the blockchain to be verified every
10 minutes, so in order to maintain that verification
time, the number of zeros needed keeps rising
as more computational power is dedicated to
the network.
It is through this huge dedication of computation
power that ensures security of the blockchain.
It would be unfeasible for an individual to
rewrite the blockchain with false information,
as they would first need to dedicate enough
power to sign previously written blocks, and
manage to keep up with the blocks currently
being written by the rest of the network.
A herculean task, as we are about to see.
There are more nuances to this system, and
I highly recommend you watch 3blue1brown’s
video on the subject if you want to learn
more.
This blockchain technology is fascinating,
and has a huge amount of potential outside
of just cryptocurrencies, but it has negative
side effects, which have been exacerbated
by the hijacking of the bitcoin hype train.
The blockchain is verified by miners, these
are people who guess the inputs for SHA-256
to generate the desired output, and they are
rewarded for doing so with some bitcoin.
To increase your chances of being the first
person to correctly guess an appropriate input,
you need to maximise your computational power,
basically employ more monkeys, but obviously
this has a breakeven point.
Computation requires expensive equipment,
and equipment prices have only risen as the
demand for blockchain verification tech increases,
and it also requires electricity.
There are giant mining farms in the wastelands
of Iceland that use the cheap geothermal energy
and the abundance of cool air to minimise
their electricity costs for this very reason.
But the price of Bitcoin has inflated so dramatically
that it’s still profitable to dedicate a
huge amount of computation power to mine,
and it has risen to damaging levels.
One Chinese mining facility was reportedly
spending 80,000 dollars a month on electricity,
but was turning over 1.5 million per month.
With returns like that, it would make perfect
sense to expand and increase your electricity
demands, and this is exactly what we are seeing.
Digiconomist have constructed a Bitcoin Energy
Consumption Index which has estimated that
the network of computers that verify bitcoin
transactions draw 3.4 Gigawatts (GW) That
3.4GW adds up to 30.1 terrawatt hours (TWh)
of energy per year.
That is on par with the energy use of the
entire country of Serbia, or roughly 0.8 percent
of total energy demand in the United States,
equal to 2.9 million US households.
To put the energy consumed by the Bitcoin
network into perspective, we can compare it
to another payment system like VISA.
According to VISA, the company consumed a
total amount of 0.19 terrawatt hours of energy
globally for all its operations.
This means that VISA has an energy need equal
to that of around 17,000 U.S. households.
We also know VISA processed 111.2 billion
transactions in 2017.
Vastly more than the Bitcoin network’s 100
million transactions, at a fraction of the
cost.
Comparing to VISA may be unfair, as they require
those pesky middle-men that we are striving
to eliminate and move towards decentralisation.
You should however consider that the brunt
of Bitcoin verification is not being performed
by individuals like you and me, we simply
cannot compete with our consumer level technology,
but by a small group of large mining facilities.
Centralised facilities where the power is
in the hands of a few.
So is there any hope for Bitcoin?
We need consider that the system is not in
equilibrium.
The Bitcoin network is limited to a production
of 21 million coins.
Over time there will be fewer bitcoins left
to mine, a feature of the original plan by
bitcoin’s mysterious founder Nakamoto.
Once the majority of bitcoins have been mined,
the block reward will become an insignificant
percentage of miners’ overall earnings.
Instead, miners will get their reward from
small transaction fees, which are already
part of the network.
So in equilibrium, the energy demanded by
the network will only be driven by these small
transaction fees, which is currently significantly
below coin-value.
Making it even less profitable to flood the
market with computation power.
This is where we come to our next point in
why Bitcoin isn’t working.
Cryptocurrencies have been hijacked by the
hype.
The vast majority of transactions occurring
for bitcoin are not to buy goods and services,
as currency was invented for, but are simply
trades of currency.
Swapping traditional currency for a share
of the bitcoins on the market.
This may sound familiar to you, because it’s
exactly what gold is used for.
This is not what Bitcoin was created for.
Bitcoin was created so that you would never
have to use dollars again.
That you would trade your dollars for bitcoins,
and never trade back.
But Bitcoin is too volatile for anyone to
use it like that.
Bitcoin has become an incredible volatile
investment vehicle, with thousands of people
attempting to trade on speculation and achieve
this dream of becoming a bitcoin millionaire.
But in order for a currency to work in a society
it needs stability, people need to trust that
the money the own today will be worth the
same amount tomorrow, this is why the dollar
is so successful.
Several countries around the world use the
dollar because their own currency has become
so volatile no-one can put their trust in
it.
How can we expect Bitcoin to become a useful
currency when it’s value jumps so dramatically
between dates due to irrational speculation,
and market manipulation.
For now Bitcoin is largely a useless environment
damaging investment vehicle, which was not
the vision Satoshi had for it.
Even if the bitcoin prices manage to stabilise
as equilibrium is reached, it’s limited
transaction time of 4 transactions per second
will likely prevent it from ever becoming
a useful currency, and will more likely become
a wealth storage method similar to gold.
Blockchain technology and cryptocurrency are
a fantastic idea in theory.
Just as paper money and debt are, but they’re
flawed for the same reason.
People.
If there are ways of exploiting a system for
financial gain, people will find it.
The only way stopping that is to set up systems
to prevent exploitation, and this is what
other currencies like Ethereum are trying
to do, while building upon the foundation
Bitcoin laid, but if history has proven anything,
if there are ways of exploiting a system for
financial gain people will find it.
You can learn how to manipulate system for
your personal gain by starting this course
on the Math of Quantitative Finance on Brilliant.
Which will take from from an introduction
to Quantitative Finance, through to probability,
statistics and finally Markov Chains.
Anyone who follows me on twitter will know
that I enjoy tracking the stock market and
understanding how it works.
Even though I’ve rarely talked about Finance
on here, it is just as important for you to
know how to save through compound interest,
determine the expected impact of opportunities
like Bitcoin, and be confident that your retirement
account will be sufficient.
And the best way to understand is by applying
these concepts yourself, which is exactly
what Brilliant allows you to achieve.
These may initially sound complicated and
scary, but Brilliant guides you through problems
that are broken into digestible sections that
bring you from knowing nothing to having a
deep understanding of the physics and math
that underlie everything in our lives.
What’s more, if you go to Brilliant.org/RealEngineering,
you can do the entire course for free!
And once you complete this course, you could
land a fast-track interview with top finance
companies!
To support Real Engineering and learn more
about Brilliant, go to brilliant.org/RealEngineering
and sign up for free.
And also, the first 73 people that go to that
link will get 20% off the annual Premium subscription.
As always thanks for watching and thank you
to all my Patreon supporters.
I just released a new reward in the form of
early access to scripts, so if you would like
to see and influence the scripts to these
videos over a week before they hit YouTube.
Please consider supporting on Patreon.

You Might Also Like

100 Comments

  • Reply Daniele Sbordone April 16, 2018 at 5:33 pm

    We're still in the early stages. Hello , wake up.

  • Reply James James April 16, 2018 at 9:23 pm

    Shut up and take my bitcoins

  • Reply Douglas April 17, 2018 at 1:12 am

    The biggest strength of bit coin is also the biggest weakness. Being independent and decentralized also means you are a lot more vulnerable. If someone steals your bitcoin its gone forever. There is no way to recover. The reason we use money is to facilitate trades, but the reason we use banks is for the security. Bitcoin give us the facilitation of money but not the security. If a hacker hacks the bank its the banks problem. If I put my money in the bank, its always the banks problem. In case of bitcoin it doesn't matter if I use a virtual wallet, the risk is always mine. For me, that is why bit coin is not working.

  • Reply electryc03 April 17, 2018 at 3:30 am

    3.9k Bitcoin Farmers disagree.

  • Reply aqua123670 April 17, 2018 at 3:52 am

    it's not false but it's so biased that it ignores many important facts. I think he's looking to buy bitcoin cheap !

    He says that bitcoin doesn't work because it's so volatile. Man come on bitcoin is new, it's only worth $135B USD, compared to USD which is worth Trillions !! That's why it's volatile af. Give it time for being widely adopted then we will see it won't be volatile like this.

    Second is he said that Proof of Work is toxic to environment. That's also true but he ignores the fact that there are many new consensus algorithm such as Proof of Stake which doesn't affect the environment AT ALL. Also with lightning network on bitcoin, the bad effect to the environment will be decreased TREMENDOUSLY.

    So sad that a great channel like this has a fucking ignorant people behind it.

    Unsubscribed instantly.

  • Reply budiman 31 April 17, 2018 at 5:17 am

    There’s no such thing as trustless system did you trust the dude who hold the crypto server?

  • Reply Isostran April 17, 2018 at 6:27 am

    So in other words Bitcoin is an investment in energy consumption.

  • Reply Shawn Elliott April 17, 2018 at 6:34 am

    The reason Bitcoin isn't working has nothing to do with the competition to "mine" Bitcoins. Bitcoin isn't working because you can't bloody well buy anything with it. Until everyone has the ability to buy their groceries with Bitcoin, it will remain a speculative asset only, and never be a currency.

    I bought a thousand bucks of various cryptos a few months ago. After I lost half my initial investment, I sold the rest and said "fuck it". I'll consider using Bitcoin again if it ever becomes useful for anything.

  • Reply Mystery Man April 17, 2018 at 7:21 am

    All cryptocurrencies will crash and burn.

  • Reply Ronald Bitter April 17, 2018 at 10:46 am

    in 10-20 years we will know more. 20 years ago nobody could even imagine FB Google etc.

  • Reply pseudoprodigy April 17, 2018 at 11:57 am

    Crypto currencies are the new tulip

  • Reply CreatorKeith April 17, 2018 at 12:17 pm

    SolutionJudge.com. https://youtu.be/uFc8f_tMXC8 #1049 ### World Leader Call to Take Action SolutionManifesto.com unifies mankind. April 11, 2018 Call all world leaders to proclaim eVote.com prevents all crimes. PRESS CONFERENCES hosted by WORLD Leaders are the PRIME and ONLY required answer to REFORM UNIFY our entire world.New Age of UNIocracy is ISOocracies = a government when all individuals have equal political power. MONocracy is government by only one person; autocracy that is satanic New World Order. URLiDent.com is the only required international citizen driven database that ensures 100% of elected officials are upholding all statues of new law of . No more appointed leaders, criminal investigations, dictator party control can exist. Start with calling all Law enforcement and National Press to show them FatherKeith.com as the #1 world Human + God Rights consultant Evangelist Activist who works fearlessly for all Military, Police, Judicial System, Banks, Churches, Public, and all of humanity with BuiltByKeith.com as the ONLY world solution clearinghouse in history of man.
    If you (or anyone) has a BEST Solution, you are requested to POST to world and contact Keith Duncan's evangelist technical R&D teaching organizations using Solution5sTeps.com and UNITYurl.com We then collaborate to fine tune these most best practices of SolutionManifesto.com Single New World Constitution to ensure all +7.6 billion of our people benefit with all exceptions handled legally and ethically. This is a new and only paradigm that also creates new course of human history destinies…. Contact top people of Trump, Duterte, Putin, Bill Gates, Warren Buffet, and other billionaires to dispatch their military and corporate security teams to come FIND Keith’s crusader teams now. 0 delays = 0 excuses !!
    The resulting transfer of massive $$$ WEALTH from ill-gotten crime gains will quickly move TRILLIONS of USD/EUROS/etc over the next 6 months to 2 years back to create our 100% middle class society where NO super rich or poverty is allowed ever to exist. Or face the retributions of HOLOCAUST planned by these super criminals who want you DEAD and enslaved so they can be the final MonkeyKings.info Anarchy rulers. WorldSchoolFund.com provides FREE wifi worldwide and all digital classrooms for everyone. SolutionHousing.ORG provides almost free land and building materials so our people create new small business run communities free of all crime and political criminals. ProfitShareHOlders.com FinalStockMarket.com kBitCoins.ORG creates single new barter exchange free trade markets with no restrictions of taxes and import/export broker criminal profiteering of day traders and cyber crime terrorist manipulation of our banks and antique stock markets controlled BY the Criminal Ruling Elite family dynasties.

    PRESS CONFERENCES hosted by WORLD Leaders are the PRIME and ONLY required answer to REFORM UNIFY our entire world.
    FOCUS on mass publicity as entire world benefits ONCE mass Press Conferences occur to reveal HOW to be honest and enforce ethics on all others. This is why CyberCrime terrorism is the worst plague of all time since clearCollarCrime.com is PCTerror.com to hold my people HostageForProfit.com since no on sees the destroyed and criminally forged/manipulated court documents and evidence. Criminals work full time covering up their previous crimes by extorting and blackmailing their victims to be silent or to join their cabal crime secret network teams. With URLident.com central unified database, no criminal can prosper and thrive since their network of fellow conspirators is quick to identify and destroy. Just like my FatherGod Jesus Christ did 2,000 years ago.. fatherKeith.com is bidOnKeith.com ready to go to the GREATEST PLACES of NEEDS that has always been SolutionMilitary.com SolutionUNI.com
    ProfitShareHolders.com destroys ALL stock market speculation, day traders, and criminal insiders + corrupt corporate executives once and forever. These are the new required corporate and small business by-laws to empower all stockholders control + stabilize stock prices based on TRUE value, not shorts/longs/puts, and never speculation or insider cyber crime trading. Computer trading triggers instant profits based on split second news of any world event or disaster profiting only those who have insider crime knowledge of economic trend cause and effects.
    Each of these builtByKeith.com only world saving solutions are required to totally REFORM and UNIFY all mankind. Keith Duncan cell (63) 9173354300 Skype: BuiltBykeith2 located at 417 United Nations Ave, Ermita, Manila Philippines 1000. Contact USA GOV, World Leaders, Press, DUTERTE and MILITARY to dispatch teams to FIND Keith and protect his life and team assets now.

    USA State Department sent this today, April 15, 2018

    everyone else can do the same.. This is another 'emergency' request for USA Military (per SolutionMilitary.com) to contact and ESCORT Keith Brent Duncan back to Atlanta GA + Washington under Military protection from #1 most wanted cybercriminal terrorist ROBERT DEE ROSE now at OneOceanbahamas.com per Norfolk VA 4:11cr112 most powerful Class Action lawsuit Landmark Miscarriage of Justice kidnapping conspiracies based on Cancelled TPO 11.1.1171.99 dated July 15, 2011 in Cobb County GA USA per AG Sally Yates and DA Cobb County Berry Vic Reynolds. over 100 persons go to PRISON for direct links to WhereIsRobertRose.com per the original robbery of my homes on Aug 4, 2010, then Feb 4, 2011 per Marietta GA PD 1.11.2506 forged 4 times to create TPO 1.11.1171.99 and then Aug 22, 2011 TPO 11.1.7683.99 kidnapping murder for hire conspiracies that violate well over 100 Constitional Laws including Treason, Espionage, infiltration of USA GOV databases and extortion payoff of over 100 key USA gov officials Atlanta, GA, Washington DC, Norfolk VA< and Raleigh NC. WHO will actually contact Keith Duncan NOW at (63) 917-335-4300 as I am victimized by everyone including my very own families because everyone PROFITEERed criminally since fateful Nov 4, 2007 per AgileLaw.com and HomeWaves.com RICO crime conspiracies worth billions of $$$ in stolen assets. WHO actually demands Criminal investigations and SENATE/CONGRESS congressional hearings as well as PRESIDENTAL hosted Press Confernces on. WHY. EVOTE.ONE is the ONLY answer for mankind to forever remove ALL criminals including the worst cyber crime terrorists who are criminal league inside most government agencies. URLiDent.com is the ONLY single world open public database that ensures total Peace and social justice. Keith Duncan. Who contacts Keith now, even over skype: BuiltBykeith2. located 417 United Nations Ave, Manila 1/2 block north of USA EMBASSY who REFUSES to send military or DOJ for now 2 very long logged years…

  • Reply shaun kaufmann April 17, 2018 at 12:58 pm

    Love your videos but if you are going to make a sweeping statements comparing the environmental damage as a result of one system to another you are going to need a more complex life cycle analysis to back it up. as you clearly pointed out Visa is dependent on current financial systems and therefore these need to be brought into the analysis. Considering the amount of people who are required to run these I'm guessing there energy/environmental impact would be tipped in a very different direction (if bitcoin itself were to be be decoupled that is). Again great vids!

  • Reply MarcellusTheGreen April 17, 2018 at 1:15 pm

    Bitcoin … the preferred and favored method of payment for crooks, ransomers, and embezzlers everywhere.

  • Reply MarcellusTheGreen April 17, 2018 at 1:17 pm

    Another damn commercial?

  • Reply Tuppoo94 April 17, 2018 at 2:48 pm

    Bitcoin hasn't really done the things it was supposed to do. Its just anothet fiat currency, but even calling it that might be doing it a favor. The crazy thing is that the value of bitcoin is measured in the very thing it was supposed to displace, the US dollar, which is also a fiat currency. So here we have a useless fiat currency backed by another fiat currency.

  • Reply Daniel Kearney April 17, 2018 at 3:45 pm

    great vids bud! have subed to you 🙂 where in Ireland ya from? I'm a louth man myself 🙂

  • Reply old account April 17, 2018 at 4:09 pm

    well it works to the ones who used bitcoin to make profits till it becomes worthless money is money they get printed everyday but time only exist once and you cannot buy that second back that passed by reading this message.

  • Reply jefferson Jones April 17, 2018 at 5:28 pm

    This is mostly based on outdated Information. Also the disadvantages are not being put into perspective.
    1. Since Lightning the transfers are faster and cheaper than ever before.
    2. Energy demand will therefore not rise proportional to user amount / numbers of transfer.
    3. The strong volatility is not that strong anymore.
    4. Guessing of prime numbers is indeed a little senseless. There should be a better way to use that computational power and there are, e.g. a blockchain application that uses the power to calculate scientific tasks.

  • Reply Transgender prophet Muhammad April 17, 2018 at 6:48 pm

    Bitcoin earned me a lot and I still have some left I bought very early on. Doesn't matter what happens… it already paid out a hundredfold. And gold… well, I always have some gold just in case. People might burn $ and € but for gold you always get something you really need. And if that doesn't work… well… I'm a very charming fellow.
    Also… graphic cards? Wrong servers, m8.

  • Reply Igor Yalovoy April 17, 2018 at 8:20 pm

    Welcome to lightning and proof of stake.

  • Reply Danilo Popović April 17, 2018 at 8:40 pm

    The problem isnt in bitcoin, the problem is in capitalism. You simply cant escape economic crashes, which are natural part on the system!

  • Reply Nic Parker April 17, 2018 at 10:05 pm

    the power comes from natural sources you said ,,, Stupid kid.. OMFG the sky is falling.,

  • Reply reborn756 April 18, 2018 at 12:02 am

    I don't think mine the coin is proffitable but, it's supposed to be a cryptocurrency, you buy stuff with it, i think it works and pretty well

  • Reply sicqmusic April 18, 2018 at 2:29 am

    look into skycoin its the new internet!

  • Reply TheHotcrumbs April 18, 2018 at 8:11 am

    NO TAX LIABILITIES CAN BE ATTACHED TO CRYPTO , SO WHOS GOING TO REPAIR THE ROADS , REPAIR INFRACSTRUCTURE , PAY FOR WELFARE , AND THATS WHY CRYPTO AINT GOING TO WORK !!!!

  • Reply Crypto Genom April 18, 2018 at 9:35 am

    Блокчейн. Замечательное инфомуви. Ненавящиво толкую, совсем на днях проведут вебстрим в формате ликбез. Не рубите в блокчейне? Дело не хитрое! Спросите тревожащие вас вопросики. Заплывайте на регистрацию мероприятия, подробнее в твиторе olegsmirnov108. Ещё раз спасиб за видео

  • Reply Rusty Blader April 18, 2018 at 5:20 pm

    Ehterium is dead already

  • Reply Joe DidIt April 18, 2018 at 6:24 pm

    very one sided statement at the end
    i would agree that bitcoin is not the future as its technologically very immature
    but cryptos are still the future currencies

  • Reply Captain Carter April 18, 2018 at 8:18 pm

    How much bank's pay for this?

  • Reply Marco Borali April 18, 2018 at 10:55 pm

    Bogdanoff?

  • Reply Ondra Sněhulák April 19, 2018 at 9:50 am

    and the answer to these problems is SKYcoin

  • Reply Dhaval Raja April 19, 2018 at 10:11 am

    bitcoin transaction fees are in bitcoins, thus the transaction fees increase with increase in price of bitcoins.. the increasing price of bitcoins balances the power usage of miners. thats the whole plan. bitcoin is still the future of currencies, it will eventually happen in time..

  • Reply eric martin Bosse April 19, 2018 at 11:42 am

    fud fud fud…. lmao !

  • Reply Zimboiii April 19, 2018 at 3:21 pm

    The volatility is less if you use a log chart, it's also an incredible small market cap which causes volatility along with speculation.

  • Reply Uncle Monty April 19, 2018 at 4:32 pm

    This is good for bitcoin.

  • Reply Jonathan Thomas April 19, 2018 at 8:30 pm

    Interesting video, but it seems your information was outdated before you began. That is, this is a video I'd expect to see in January 2017, or before. Could you do a new video in the near future addressing protocol upgrades and BIP, as well as Lightening Network? Also, could you address the Bitcoin phenomenon in the context of a "digital gold" for the future based on it's architecture? And address the volatility of Bitcoin as a technology in it's early phase in context of other, earlier protocols being adopted? I appreciate your efforts and enjoy your videos, but there seem to be glaring omissions among generally accepted observations here. Thanks! Again, love your videos.

  • Reply dmscoon April 19, 2018 at 9:15 pm

    i don't think that the power thing is a problem of bitcoin, its a problem of human development, to say we should stop using bitcoin due to power usage is bullshit, we need to find new ways of generating a shit ton of power, we're going to need to eventually so why aren't we seriously working on this now, why doesn't nasa or any other space agency have plans to build a dyson sphere, (or more realistically) a self building dyson swarm

  • Reply PlainStupid April 19, 2018 at 10:23 pm

    Disliked for the fact that they asking money, clearly a clickbait shit. How do i know? Subscribe to my intermediate course offer for 4.99 a month.

  • Reply Cameron Sams April 19, 2018 at 11:39 pm

    Robux is the first currency

  • Reply Mathew Bateman April 20, 2018 at 6:53 am

    Bitcoin is the perfect way to dupe the greedy into the 'game' of buy/sell and too bring in a NWO single currency – which will be digital, no notes or coins.

  • Reply Atul Sohan April 20, 2018 at 7:11 am

    u tried mining and realized that it is just not possible dint u ?, this is y people say "those who can do , the rest make youtube videos"

  • Reply Dereck de Mézquita April 20, 2018 at 12:03 pm

    They didn't recently create another form of currency debt, every dollar IS DEBT since the money system was taken off the gold standard.

    The consumption of energy for verifying Bitcoin is a non issue, because it is vastly lower than the amount of waste produced by the banking system. Moreover, Bitcoin miners go to where electricity is cheaper and those sources tend to be where there is a disparity the demand and supply ie where there are few people but a lot of energy. Think about isolated mountain hydroelectric dams, or wind farms, or geothermal stations (like those in iceland). Estimate the costs of printing fiat money and that alone is a huge industry and a wasteful one at that as they are serving a corrupt system.

    The point of moving to Bitcoin is not for fun, nor to just speculate and make money. But to keep our money and escape the debt system which has been created from corruption. You lose 3% buying power simply by holding fiat. This is outrageous. 1 Bitcoin will always equal 1 Bitcoin the supply never changes and thus it is not Bitcoin which is volatile but fiat, as it is printed en masse everyday. Bitcoin is antivolatile. The volatility of fiat against Bitcoin will subside with mass adoption. Bitcoin is TINY compared to anything else the economy. And even when compared to other bubbles"" not even 5% of the dotcom bubble.

    Honest I trust Bitcoin and DigiByte more than I trust ANY other traditional currency! The only traditional currencies I could ever trust are those backed by a commodity like gold or silver.

    If you like Bitcoin and crypto but dislike the centralisation it has lead to ask yourself two questions. Is this centralisation greater than or less than that of the banking system? And second question if you don't like this amount of centralisation in Bitcoin then go to another coin there are many available and some which have extreme protocols to keep decentralisation and GPU mining notably DigiByte DGB. And DigiByte is not limited in the same way Bitcoin is, DigiByte scales on chain and is currently at 560 TPS will be 280 000 TPS in a few years, Bitcoin can do something similar but through the lightning protocol.

    Loved the channel loved the videos on engineering, but stay in your speciality – engineering. This is not Real Economics. Don't spread misconceptions and misinformation. For this horrible video you get a dislike, I hope I don't have to unsubscribe from your channel. Please also put out another video and CORRECT these errors.

    You pass opinion off as fact, the facts state otherwise. If you'd like to know more about cryptocurrencies Bitcoin and DigiByte please ask I would be happy to explain these things. Maybe even get the founder of DigiByte to come on for an interview, he'll teach you a thing or two.

  • Reply dcbourbonireland April 20, 2018 at 2:44 pm

    If somebody buys 51% of bit coin they will be able to take control and own the rest of the 49% Bit coins that exist and nobody could stop them .They say Russia has 30% the Bitcoins

  • Reply Nikola Radin April 20, 2018 at 2:48 pm

    What a crock of shit. When you by bit coins who gets the money or where does it go? Notice how every couple of years a hacker steals shitloads of money.  I'm almost 50 years old and have not had a problem with banks so why buy bitcoins when I can't pull physical money out of it?

  • Reply Kiilaslammas April 20, 2018 at 4:02 pm

    Hard cash will always be King.

  • Reply hangman057 April 20, 2018 at 4:40 pm

    I own Bitcoin, ether emu and litecoin and I'm happy as fuck motherfucker. Hahahahahahahahaa, all the way to the fuckin bank

  • Reply Ivar Baratheon April 20, 2018 at 4:46 pm

    proof of stake

  • Reply John Ashtone April 20, 2018 at 7:59 pm

    And the Key to making money is saving it? And Brian at 10:09 educates you, with what Einstein called the 8th wonder of the world, COMPOUND INTEREST. It is how Warren Buffett made his do$h, slow year on year compound interest gains, on top of compound interst gains. Meanwhile Bitcoin or protected file transfer, is a nice idea, that will eventually take hold. Once someone comes up with a regulated version, that cannot be inflated and so deflated in value to the holder, of those protected files.

  • Reply Luka Kujundžić-Lujan April 20, 2018 at 9:57 pm

    well , just critics , nothing to add about huge advantages that bitcoin offers. also, although BTC has flaws , BTC is being upgraded every few months, each time eliminating some of the flaws. Nothing is being said about LN upgrade, Segwit, and many more that are coming. This is my first watched video on Real Engineering channel, but it will be last. If you put so much energy on makeing videos, then you could do some real research ,and present many of advantages, and upgrades etc. This is "paid by banksters engineering "

  • Reply acronis011 April 20, 2018 at 10:06 pm

    Funny how you didnt add the salaries of the employes of VISA and banks when you calculated how expensive the maintenance of the bitcoin network is.

  • Reply James Diaz April 21, 2018 at 12:54 am

    So it's not working cause the old SHA256 algorithm uses alot of power, and not stable? Yet Bitcoin's value doubles on a clear point of DOUBLING within the algorithm. Bitcoin crashed because it reached it's doubling point, NOT MARKET MANIPULATION, the value peaked and than the SUPPLY doubled as well as the peak value. You really need to do A LOT more research into Bitcoin and the other altcoins. Newer algorithms are also built to correct the SHA256 flaws. However Bitcoin is WORKING AS INTENDED it was designed upon how GOLD IS TRADED. To be a new currency you need a "Gold" standard and Bitcoin is now that standard for the altcoins. It's still very valuable and will only grow into be twice a valuable before the next doubling in the algorithm. Also you ignore the facts that processing power is getting ever more powerful and efficient just because it isn't at that equilibrium now doesn't mean it will be in the future. This video is only misinforming people with half researched information. Don't look at markets, look at the algorithm doubling aspects and rules. Your reasons it's not working are nonsense. https://en.bitcoin.it/wiki/Controlled_supply See "Money Supply"

  • Reply John Myron April 21, 2018 at 2:43 am

    B-b-but they told me we were going to the moon 🙁

  • Reply schiz0phren1c April 21, 2018 at 6:13 am

    Hang on mate(I love your proper Irish accent by the way, very refreshing after so many ghastly accents and attempts on youpube)- by the way advance warning I did NOT intend this comment to be so long! and I hope you enjoy it!
    but(and I'm not being Sarcastic here) did you just seriously say(somewhere around 7 minutes) that Bitcoin is flawed because "Centralised facilities where the power is in the hands of the few" ….

    Erm, Bilderberg ring a bell?(don't worry I'm not talking conspiracies-more like "The Bilderberg Group, Bilderberg conference, Bilderberg meetings or Bilderberg Club is an annual private conference of 120 to 150 people of the European and North American political elite, experts from industry, finance, academia and the media, established in 1954 by Prince Bernhard of the Netherlands."

    The "traditional" banking system is so flawed, corrupt, bankrupt both morally and fiscally that we would be much better off with the Glooper from Making Money by Terry Pratchett (RIP Terry you are missed) or by the old "money in the sock under the mattress" system,

    We are in a grave situation fiscally, in the entire world, we were on the very CUSP of Universal Credit, less money stuck at the top 1% and more going to the 99% who can't afford 300 million dollar mega-yachts and other such flagrant abuses of "power"
    we were ALMOST THERE then suddenly, apparently from nowhere an orange gobshite appeared from the wings to feck things up again and make sure the money stayed where it always had been, with the megarich tyrants,
    and now that there is a currency that DOESN'T depend on their outdated models, that doesn't NEED the banks, a currency, a Cryptocurrency if you will, that can make an intelligent MODERN person rich(nothing to the extent of the "old guard" but fairly well off)
    then all of a sudden that system, that currency,that very IDEAL is immediately under attack with frankly bullshit "facts" to terrorise people into not using it.
    324 times so far Bitcoin has been in "imminent risk of collapse" according to the media whores who are in the back pockets of the establishment.

    I am not "Woke"(I dislike that term intensely)
    I am not a Conspiracy Theorist(I wait until things are provable facts before I become interested)
    I am not living in glee at the thought of a Global collapse, such would be terrifying.
    I do not dislike the Gentleman behind Real Engineering, in fact he sounds fascinating,
    I just do not believe that Bitcoin is in trouble, and I believe firmly in Cryptocurrency as the way forwards as regards money, for as long as we retain this outmoded form of commerce,
    I genuinely did not expect this to run this long but I hope you enjoyed reading it, if you found it TL/DR I feel sorry for you and recommend getting off youpube and reading these fantastic books about Spot the dog(Spoilers!- but Spot has a ball, a big ball, a big red ball, its great stuff to prepare you to read posts like this without warping your tiny little mind 🙂

  • Reply SuperResistant April 21, 2018 at 10:00 am

    Being an engineer and not understanding the electricity market ?
    Mining consumption is not in direct competition with human consumption simply because the cost of energy in order to make profit must be near zero. Any Bitcoin mining simulator proves it : you can't be profitable if you pay electricity. Mining is a niche energy market like aluminium.

  • Reply SuperResistant April 21, 2018 at 10:02 am

    Bitcoin was created for people to do what they like, not what you like. Plus it's an experimental technology that is evolving. Making bold statement like this is pointless.

  • Reply Tmp Name April 21, 2018 at 2:11 pm

    Mining takes electricity, sure, but how much electricity can be saved shuttering banks with thousands of employees in thousands of locations with tens of millions of computers running, fluorescent lights, etc. On the surface, bitcoin might seem harsh on the environment, but it is actually much more efficient than millions of bank employees driving their gas guzzlers to work every day.

  • Reply Bill Goode April 21, 2018 at 6:48 pm

    This is all well & fine for crypto currencies that use the blockchain. What about a digital currency that does not use the blockchain, such as ClouldCoin? Cloudcoin transactions are instantaneous and are as anonymous as cash. No tracking. No huge file, getting larger with each transaction, to keep track of transactions forever.

  • Reply Tiernan Cridland April 21, 2018 at 10:08 pm

    The cost of Visa's operation is far more than just the power consumed and an unfair, also incomplete, comparison. Another topic which you touched on is currency value fluctuation. I do agree that Bitcoin fluctuates more than others; however, all currencies fluctuate. It's a mean to an ends. P.S. You advertise far too often.

  • Reply Lachlan G April 22, 2018 at 4:42 am

    not going to mention lightning? Bitcoin will process more tx than visa. Give it some time, it is trying to save us all.

  • Reply Nigel Doyle April 22, 2018 at 8:10 am

    1:15 – "tried and through"?? True!

  • Reply G A April 22, 2018 at 8:43 am

    Earn 1% daily
    Bitcoin,Ehterium,Dasch,BtcCash,Litecoin. Company with real license,fast support.
    Free120WLS wort 120$.daily earn 0.1% https://goo.gl/c8hKsZ

  • Reply Karl Howe April 22, 2018 at 11:20 am

    Uhmm… Bitcoin's Lightning Networking?!?! = Bitcoin:Visa+MasterCard?!?!?!

  • Reply Karl Howe April 22, 2018 at 11:21 am

    soooo outdated video!!!
    needs to be deleted from the internet!

  • Reply Traqn Savov April 22, 2018 at 1:39 pm

    The gold rush

  • Reply Vik Table April 22, 2018 at 1:58 pm

    What a terrible video, you skipped all about Lightning Network, which, used on Bitcoin, can allow to do much more transactions then VISA, on Bitcoin.

  • Reply Ioannis Karras April 22, 2018 at 3:40 pm

    I don't get it. Where is this blockchain stored? Why does every transaction have to verify all previous ones? Why does every hash need to say how much power is needed to verify it? Why is there a limited amount of verification to be done, if transactions will keep happening, and those are what need to be verified?

  • Reply Groove Federation April 22, 2018 at 4:15 pm

    maybe somebody should tell the people who have over $280,000,000,000+ invested into the crypto sphere that it's not working…… or to the people that have created over 1560+ crypto coins or to the people who are utilizing the technology to keep a secure track of parcels or medication supplying, or to the african country where they used the blockchain to secure the voting system or to the people who have integrated blockchain tech into an advertising platform where the viewer gets paid to view adverts or developing a full decentralized operating system with blockchain security/encryption at its core, or any of the other wonderful ideas about what to do with the blockchain tech that exist currently and scoped in for the future………..

  • Reply Keep April 22, 2018 at 4:43 pm

    4065 crypto farmers disliked this vid, because they dont want their hot air to blow up and finally have to work for real !

  • Reply Daniel Rojas April 22, 2018 at 5:53 pm

    1- Lightning Network. Google it.
    2- Price will stabilize over time as adoption in real world cases increase.

  • Reply Roman Mazur April 22, 2018 at 8:22 pm

    well, you have not mentioned different types of confirming currencies like proof of stake etc.

  • Reply Anthony Rock April 22, 2018 at 11:13 pm

    yeah. the "demand for electricity argument" against cryptos. as opposed to what? our current petro-dollar system that murders millions in global wars? so what?

  • Reply Jonas April 22, 2018 at 11:59 pm

    Greed is Eternal

  • Reply ɃoilerRoom April 23, 2018 at 1:49 am

    Nice video, but there are a few flaws in each of the examples provided.
    8:35 "People need to trust that the money they own today, will be worth the same amount tomorrow. This is why the dollar is so successful."
    Not true. Inflation. Your USD is worth less each day.

  • Reply SeaBass Gorka April 23, 2018 at 1:51 am

    Here come the libertarians…

  • Reply Shiro Yasha April 23, 2018 at 6:24 am

    this is the reason why I invest on silver and gold instead of Bitcoin

  • Reply Crazy Ben April 23, 2018 at 8:52 am

    Why no mention of the upcoming Lightning network ? Obviously you only wanted to talk about the flaws of bitcoin currently. They will be overcome soon and in time. Cryptocurrency & Decentralization is the future. Embrace it or left behind. YOUR CHOICE!

  • Reply UNSC Eagle April 23, 2018 at 10:55 am

    ALL THOSE CARDS!!! Shameful…I can't even get 1070 at a reasonabls price.

  • Reply Adam Blakeslee April 23, 2018 at 6:45 pm

    Cryptocurrencies would be a wonderful backup currencies to combat economic crises. In the case that there isn't enough trust in existing capital to perform basic transactions (e.g. buying food) you can introduce a cryptocurrency to provide just enough capital to keep small communities working. Just get a small referendum to adopt and then offer anyone joining a small amount of the new capital to get started. As long as the starting money is the same for everybody you've got a place to start price negociations for goods and services.

    However, with Blockchain's limit of 4 transactions per second it becomes impractical to work an economy larger than a large town. Working between crypto currency networks would require at least theoretical exchanges of commodity moneys like gold or meta-crypto currency networks. Essentially, you'd need to exchange currencies just for changing zip codes.

    In short, we'd be back in pre-central banking times but that's still a favorable result to flat out barter economies or the economic shut down from credit panics.

  • Reply J Law April 23, 2018 at 9:26 pm

    Plenty of other coins that do not require tons of energy. Its called progress. Fucking idiot… XLM to name one.

  • Reply Coin Noob April 23, 2018 at 10:59 pm

    you didn't mention the lightening network at all…?

  • Reply Bob April 23, 2018 at 11:47 pm

    I tell what isn't fucking brilliant. Every fucking youtuber has brilliant as a sponsor.

  • Reply Richard Johansson April 24, 2018 at 2:05 am

    bs video

  • Reply Allen A April 24, 2018 at 9:07 am

    fuck off irish

  • Reply TheDenux April 24, 2018 at 10:28 am

    The energy output done by Digiconomist has been debunked several, just FYI.

  • Reply Jin Literatus April 24, 2018 at 10:50 am

    Cool review! What's your opinion about SciDex?

  • Reply angel13gabriel April 24, 2018 at 11:17 am

    Hm, Serbia solo or you ment 2 countries; Republic of Serbia and Republic of Kosovo? I'm confused cause Kosovo is another country if you didn't know it like it whole world allready knows. It's same as you would present a map where Ireland is part of UK. No hard feellings.

  • Reply Nostalgic memories April 24, 2018 at 3:04 pm

    life was way easier 100+ years ago… for ppl who dont know shit about internet and these stuff, will be nightmare. i would trust only when i see real money

  • Reply caleb April 24, 2018 at 3:38 pm

    Elegant explanation.

  • Reply BubbleBreak April 25, 2018 at 12:16 am

    Barter economy is probably a myth, my understanding is that it is widely considered to be so academically.

  • Reply CV M April 25, 2018 at 3:30 am

    * Bitcoin is money, not engineering. It follows different principles.
    * Bitcoin is working already with the current coins. Why should the energy consumption to mine new coins be a problem? It is an advantage because Bitcoins are limited this way. There is no printing press.
    * Every investment may be volatile, so what? This is called market.
    * Bitcoins are exchanged to other currencies, so what? This is daily business for a currency and proves fungibility/ liquidity.
    * On a global level cryptocurrencies will save transaction fees, time, paper work and process costs and transaction fees in huge amounts. These huge savings will be at virtually NO costs since computers will be running all the time anyway.

  • Reply Internet Quality Police April 25, 2018 at 4:51 am

    Unwatchable. Just a constant babble.

  • Reply grumplepig April 25, 2018 at 6:31 am

    Thank you, very informative

  • Reply A Cat April 25, 2018 at 9:44 am

    Best FUD i have even seen gj

  • Reply Frederick Vesseur April 25, 2018 at 10:56 am

    Better rename this as Why This FUD is Not Working LOL

  • Reply Nelly Nelson April 25, 2018 at 7:04 pm

    Im a miner and this is probably the best overview of crypto out there. Well done.

  • Reply Diverge April 26, 2018 at 10:37 am

    bitcoin ad

  • Reply Matthias S. April 27, 2018 at 7:40 am

    You make a lot of assumptions and state them as facts. As retailers adopt, more people get to know and use it, it will eventually become a world's currency. With segwit and lightning transactions become cheap and instant. The benefits outweigh the downside, even though I also don't like the mining aspect… I'd always prefer using coins like Nano, so I won't feel bad for the energy used.

  • Reply YoItsLemonBoy! May 25, 2018 at 8:22 pm

    proof of stake.

  • Reply zeebaa_sahal June 19, 2018 at 10:22 am

    I'm so glad you made this public again <3

  • Leave a Reply