I knew that Bitcoin mining consumes a lot of energy, and more energy than 159 countries, as recently stated by CNBC News. I didn’t expect it.
Now, with its valuation hitting new record high, I couldn’t resist to ask #Google; “how much Bitcoins were left to mine” out there? And if Google is right, 80% of Bitcoins are already mined!
Considering the CNBC’s assumptions, it is now impossible, anywhere in the world, for an individual to mine even a single Bitcoin with his PC in the basement and make profits, without an illegal electricity grid connection.
He or she may posses a personal solar field like the one at the Agahozo Shalom Youth Village in Eastern Rwanda, producing 6% of electricity. But it still won’t make a single profit, as hundred computers are now needed to mine a single Bitcoin.
Obviously, we are no longer talking of a currency made by the people for the people, as it was often described in its debuts, less than a decade ago.
Bitcoin is now a speculative derivative on a Western stock exchange, than anything else, as the inputs are extremely high to the outputs.
Myself, I was an earlier fan of the currency, with the distributed ledgers technology behind, bypassing manipulations from some central banks and making markets liberal for real; as often advised by conspirators.
So, it is a sad day for me to see this crypto-currency that was supposed to facilitate dynamic money transfers around the world and, for instance, making the remittance process easier, cheaper and faster to emerging markets like Africa; turning into a pure speculation product for an already filthy rich initiated gang.
With all that above mentioned in mind, Bitcoin is rapidly and surely becoming less attractive for emerging markets like #Africa. In fact, even if Africans were to use solar energy, with free solar panels from Akon and donated computing hardware from I don’t know who, Bitcoin is officially a currency for an exclusive tech elite.
Contrary to Fait money, you can’t mine unlimited Bitcoins, no matter how cheap is your electricity. Therefore, with only 20% left to be mined by the entire world, it is too late for emerging markets to jump in the game and acquire a fair share of the pie, because there is no point to enter a game in which you will be solely relegated to user and never to owner?
Nevertheless, the #blockchain technology, on which Bitcoins are exchanged, is a marvelous innovation as it is enabling multiple layers of authentication, simultaneously. The use of Blockchain in other areas, will definitely eliminate a larger part of forgery in emerging markets.
That is one of the reasons mergims.com is rebuilding a new back-end system based on Blockchain, to be integrated to a new interface by early next year.
The combination of that technology with artificial intelligence and machine learning will make almost impossible to buy or sell fake products and services on the revamped Mergims platforms, since many automated verifications, free of human interventions, will happen in less than a second on each transaction requested.
Now, even though the world is looking for ways to building cashless economies, for the sake of efficiency, I personally consider Bitcoin principles already unfair for Africa.
Perhaps, the world news leaders like CNBC News should tell us more about Asian #cashless economies like China and South Korea, which are slowly but surely drifting to government backed crypto-currencies.
Muhire Louis-Antoine is the Founder & Managing Director of MERGIMS