Warning sign for falling off a cliff or mountain. There are mountains in the background indicating the danger.
Editorial

Cryptocurrency and Bitcoin: Beware the Pitfalls

3 minute read
Gerry McGovern avatar
Buying into the cryptocurrency and bitcoin hype? Might want to save a few of those dollars.

You come home one evening to find your house almost burned to the ground. Someone is standing outside with a can of “organically sourced, sustainable green diesel." They hand you a certificate for “One burned down house."

It’s a new currency, they say. If you trade well you may be able to turn it into two burned down houses and perhaps even 200.

Crypto and Bitcoin: What's the Value?

That’s bitcoin, crypto, NFTs, a whole model of scams, grifts and Ponzi schemes that are based on the destruction of energy and materials. Bitcoins are expensive to create because they involve the use of very specialized computers processing gigantic number-crunching exercises that uses up vast amounts of energy. At the end of the process, the bitcoin grifter gets one bitcoin if they destroy enough stuff.

Pointless destruction of the Earth’s materials and energy. In the middle of a climate crisis. That’s the tech bro culture.

It used to be that we created value by building things that other people found useful, like houses, chairs, cups, hammers, stuff like that. In the tech bro world, they attempt to create scam value by destroying things.

Related Article: 2022 Blockchain and Cryptocurrency Reality Check

Not Even Blockchain Is Useful

Crypto is both a scam on gullible investors and on the environment. It has no useful function other than as a tool in a Ponzi scheme, or perhaps as a way criminals can transfer their funds.

Crypto uses blockchain, which is a technology that does nothing useful. Think of blockchain as a competitor to Visa. According to Digiconomist, one blockchain transaction costs as much energy as almost 1.5 million Visa transactions. The crypto underworld destroys as much energy every year as a country like Australia or Argentina uses. Bitcoin creates the same amount of e-waste every year as the Netherlands.

Learning Opportunities

All for nothingness. Bitcoin energy consumption has been rising by about 40% every year because bitcoin is designed to destroy more and more energy every year.

How can that be environmentally sound or economically viable or useful? It’s not. It can’t be. It doesn’t need to be because it’s gangster stuff. It’s criminal on multiple levels. These days, the only difference between Silicon Valley and Las Vegas is in the chips they use. They’re both gambling meccas.

Related Article: Web3 Crypto: A Decentralized Utopia or Dystopia?

Crypto: Massive Costs, Massive Environmental Impact

There are so many crypto and blockchain scams that you have “Crypto scams of the week” pages. Not scams of the year, not scams of the month — scams of the week. To in any way interact with the crypto world is to fall into a toxic sewer of seedy avatars screaming “Buy the dip” and how they’re giving away free this or free that, or how bitcoin is actually the savior of the poor or the answer to the climate crisis, or whatever grifty thing they can think of as they fish for desperate, greedy suckers.

Crypto reflects a tech culture that feels that energy and materials are limitless and that tech bros have the right to use and trash as much energy and materials as they want. Crypto reflects planned obsolescence thinking, whereby the routes to maximum return on investment are found through piling up the maximum amount of waste possible. Crypto has massive costs and absolutely zero useful, real value other than the value of the sucker who thinks it has value.

Blockchain is like Brexit. There’s nothing there. Nothing useful anyway. It’s a scam.

About the author

Gerry McGovern

Gerry McGovern is the founder and CEO of Customer Carewords. He is widely regarded as the worldwide authority on increasing web satisfaction by managing customer tasks.

About CMSWire

For nearly two decades CMSWire, produced by Simpler Media Group, has been the world's leading community of customer experience professionals.

.

Today the CMSWire community consists of over 5 million influential customer experience, digital experience and customer service leaders, the majority of whom are based in North America and employed by medium to large organizations. Our sister community, Reworked gathers the world's leading employee experience and digital workplace professionals.

Join the Community

Get the CMSWire Mobile App

Download App Store
Download google play