John McAfee accidentally just revealed why Bitcoin is a total fraud: Behold the logic of “artificial work”

Monday, September 18, 2017
By Paul Martin

by: Mike Adams
NaturalNews.com
Sunday, September 17, 2017

In a recent CNBC interview that’s being widely touted by self-deluded Bitcoin promoters as some kind of “smack down” of JP Morgan CEO Jamie Dimon, Bitcoin advocate John McAfee accidentally admitted why Bitcoin is a total fraud that’s doomed to fail.

In answering Jamie Dimon’s recent declaration that Bitcoin is a fraud, McAfee replied: (see the video at The Daily Sheeple)

However, sir… you called Bitcoin ‘a fraud.’ I’m a Bitcoin miner. We create Bitcoins. It costs over one thousand dollars per coin to create a Bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because [the dollar] costs whatever the paper costs, but it costs me and other miners over a thousand dollars per coin – it’s called ‘proof of work.’

Behold the logic of artificial work: How John McAfee just embraced Paul Krugman’s ditch digging fable

The problem with John McAfee’s explanation, of course, is that it admits Bitcoins can only be created through the practice of computational wheel spinning operations where the difficulty and duration of such wheel spinning is artificially made needlessly complex by the Bitcoin algorithm. In a world where Bitcoins used to be created for less than one penny’s worth of computational work, a single Bitcoin now requires over US$1,000 worth of “artificial work” to be achieved. A rational person must ask McAfee, “Why did Bitcoins used to cost just a penny to create, and now they cost a thousand dollars?” The 100,000 X increase in complexity for generating a Bitcoin, it turns out, is an artificial work algorithm known as “computational difficulty” in mining.

This admission should be shocking to all Bitcoin holders for the simple reason that if Bitcoin drops below $1,000, mining now becomes unprofitable, rendering a very large part of the entire Bitcoin mining infrastructure instantly obsolete. The only thing keeping Bitcoin mining profitable right now is the bubble pricing of Bitcoin itself, and because all bubbles eventually burst, Bitcoin mining will sooner or later reach a point where it’s not worth the investment of hardware, electricity and time. (There’s also the 21 million coin limit that’s rapidly approaching, by the way, which will spell the end of Bitcoin mining as it is conducted today.)

The Rest…HERE

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