Energy is expensive in Argentina like anywhere else. The difference is that Argentina’s government spends the equivalent of 3%+ of its GDP on energy subsidies. Then even more (US$3bn+) is spent on importing energy in various forms.The power is cheap but I'm wondering how they're able to import all the technology and equipment they need to make bitcoin...? Computer stuff isn't cheap here.
That's what I meant. Cheap to them. Expensive to everyone who subsidizes the gov rates.Energy is expensive in Argentina like anywhere else. The difference is that Argentina’s government spends the equivalent of 3%+ of its GDP on energy subsidies. Then even more (US$3bn+) is spent on importing energy in various forms.
Because the consumers (households and businesses) don’t see how expensive it really is, they use more of it and ultimately pay the difference by a) inflation to cover the monetary emission to pay the subsidies b) energy disruptions when there is not enough to go around and c) capital controls to protect the reserves ultimately needed to keep Argentina’s lights on.
The 50% tax on importing equipment will probably quickly be recovered in the form of direct and indirect energy subsidies.
This, exactly.This is truly idiotic. And its one more example of the global trend to privatize profit and socialize expenses. If the bitcoin falls, and it will (cyclicly) then the miners shut down. If the bitcoin rises, the profits immediately shift to offshore banks. Argentina does not profit in any way, and Argentines, once again, get screwed. Bit coin mining is ecologically unsustainable, produces electronic waste in the sense of 55,000 obsolete computers in 2 or 3 years, and is a way to subsidize speculators.
What is naive about this? Do you understand the proof-of-work concept? Can you, being a pragmatic person, suggest a viable alternative? Bitcoin mining is resource wasteful by design, but the idea is not naive.When Satoshi Nakamoto ... But, like many/most technically brilliant people, he was naive. What he intended to be used for commerce, has instead been hijacked by speculators, whose manipulations have made it too unstable to be used for its intended design purpose of commerce.
I meant he was naive about human nature, capitalism, and how money, like water, always finds the cracks. Yes, I understand proof of work, No, I cannot suggest a viable alternative off the top of my head. I agree the basic concept of an alternative to government controlled fiat currencies is not naive; that's not what I meant.What is naive about this? Do you understand the proof-of-work concept? Can you, being a pragmatic person, suggest a viable alternative? Bitcoin mining is resource wasteful by design, but the idea is not naive.
True. True. I do not agree that this is the cause of volatility.Stability is a sign of maturity. And bitcoin is still not mature at this point. I mean not in a technological sense, but people opinions about what the fair price is supposed to be is not established, hence high volatility.
True, but painfully obvious.As to "hijacked by speculators", I would say the stock market is hijacked by speculators, the real estate market is hijacked by speculators. So, hardly the bitcoin is an exception here.
Agree, and who knows? This is Argentina.And no, it is not cool to use subsidized electricity for mining and most likely bitcoin mining will be banned here, as it is banned in China.