© Nullsession/FlickrJohn McAfee at DefCon 2014.
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 fableThe 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.
Comment: St. Martin wasn't the only island devastated by Irma, see also:
'Barbuda is literally rubble': Shocked PM says Hurricane Irma destroyed 90% of homes on tiny Caribbean island