As the Bitcoin network hash rate reaches an all-time high, Jorge Stolfi is urging the US to ban mining. According to the Unicamp professor, cryptocurrencies are “the greatest Ponzi in history” it is a “waste of energy”.
In the message addressed to the US Senate Finance Committee, Stolfi states that Bitcoin mining uses the equivalent of 7 nuclear reactors or 180 coal trucks per day. Further on, it also refutes the main arguments of major mining companies.
With almost daily attacks on cryptocurrencies, such as when he claimed that Bitcoin will cost millions of lives, the Unicamp professor has become one of the biggest haters in the industry. For those who follow him on Twitter, it is common to see him discussing with investors of various cryptocurrencies.
Bitcoin hash rate hits an all-time high
The hash rate, or hash rate in English, is used to measure the computing power used in Bitcoin mining. As equipment becomes more efficient, these numbers always go up.
Moreover, the recent price increase of Bitcoin is another contributing factor. After all, it is estimated that more equipment was connected to take advantage of a small profit margin that emerged this year.
According to the YCharts website, Bitcoin’s hash rate is currently estimated at 327 ExaHash per second, a balance of 18% compared to January 1.
Contrary to the stats, a solo miner found a block this week.
In addition to generating revenue for miners, such activity is also responsible for keeping Bitcoin safe and preventing attacks on the network. So the higher the hash rate, the more secure the network is.
Unicamp professor says Bitcoin mining is an unnecessary expense
Despite this, not everyone is happy about breaking this record. For Jorge Stolfi, a professor at Unicamp, Bitcoin mining is not that attractive. In a message addressed to the US Senate Finance Committee, Stolfi urges the US to exercise caution.
For example, large miners argue that the expansion of their activities means that the place where they are can benefit from this. Last year, for example, Riot shut down its equipment for part of the day so Texans could turn on all their air conditioners and weather the heat wave that was plaguing Texas.
However, Stolfi questions the miners’ good intentions and points out that they are “Instead of stabilizing the US power grid, bitcoin mining only adds a load equivalent to many hundreds of thousands of homes”. This also states that citizens pay up to 5 times more for the same electricity.
“Dear committee members, please don’t be fooled by the Bitcoin mining lobbyists. Cryptocurrencies in general are a total disaster: the largest Ponzi investment in history, the root of ransomware and a tool for money laundering – nothing more.”
@SenateFinance Dear committee members, please don’t be blindsided by Bitcoin mining lobbyists. Cryptocurrencies in general are an unmitigated disaster: the biggest ponzi investment in history, the root of ransomware and a tool for money laundering – NOTHING ELSE. >>
— Jorge Stolfi (@JorgeStolfi) January 26, 2023
Finally, Stolfi also points out that Bitcoin is inefficient. Comparing Bitcoin to Visa, he notes that BTC handles 10,000 times fewer transactions than the card giant, but leaves the Lightning Network out of the picture.
Finally, mining has come under fire for ESG issues in the past, but it is getting greener by the day. For example, this week a large mining company announced that it will use nuclear energy to power 100% of its farm.
So whether the haters like it or not, Bitcoin is becoming more secure and mining helps even those who don’t know what cryptocurrencies are.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
