Thread by @vinibarbosabr

1/ Right now, each #bitcoin 'produced' by mining generates, on average, around $3,226 in losses to miners:

Bitcoin Average Mining Costs: $20,095
BTC/USD: ~$16,869

And the mining net negative has been a reality for a few weeks in a row.

2/ When considering this quick accounting of around $3,226 of losses for each new BTC put into circulation and that every 10 minutes, 6.25 BTC are issued, we are talking about an estimated loss of $120,975/hour.

Draw your own conclusions about this... 🤷

3/ This Wednesday (21st), another large mining company demonstrates the difficulties faced in the activity, as Core Scientific filed for Chapter 11 bankruptcy in the USA.

It's not the first, not the second, and probably not the last.

4/ With each new event like this one, the #bitcoin network tends towards centralization.

It's scary to think that a network of over $300 billion USD in capitalization has a Nakamoto Coefficient (NC) equal to 2. With 2 entities being responsible for >52% of all hashrate produced.

5/ This is just one more demonstration, among many others, of how flawed #Bitcoin's economic and security model is. Or, as the advocates of the leading currency say: "this is just another FUD". 🤷

We need to have an open mind to change our minds based on new learnings.

6/ Bitcoin was an excellent idea, which emerged during a major global economic crisis and brought a rare innovation to our monetary and technological system, but technology continued to evolve and the BTC experiment brought us previously unknown answers.

7/ I don't believe bitcoin is the best candidate to continue to bring the innovation we need to decentralized money.

Currently, there are already coins that better fulfill some of the functions of bitcoin, such as #nano; or #monero for privacy.
nano.org/en/blog/the-be…