What you all think of this report besides the fact it is by a Central Bank? Some points are valid but misconstrued in my opinion.
The dependency of users on so-called miners to record and verify crypto transactions is also flawed, according to the BIS, requiring vast and costly energy use.
The BIS also said in its annual report that effective regulation of digital coins needed to be global, targeting both regulated financial institutions as well as companies offering crypto-related services.
Seems like a very short sighted article to me:
This is of course true, but they fail to mention that this is also highly unlikely. And they also fail to mention that this happens to fiat as well. Fiat currencies can depreciate to a point of no value, with the users (citizens) losing complete trust. The difference there being that if a countries fiat goes belly up, people don’t have a choice of alternative currency. In crypto if one coin were to start dying, people can exchange that for another coin without geographic limitations.
It irks me to no degree that the writers of these articles just blatantly ignore all other coins in the top 50 that don’t suffer form this limitation. Yes, Bitcoin is the largest and oldest and without it there would be no cryptocurrency and blockchain today (presumably) but to just overlook all the improvements people have come out with in the mean time is just shoddy journalism … if I can call it that.
Yea I agree. The part that always gets me is the consumption. How much does it cost to make a dollar?. All the Banks electricity and people involved.
Plus, no one talks about the fact that it will get cheaper as tech improves in Solar and hydro and that these miners are all in low-cost sectors that have nothing else and are supporting some of those communities.