Don't worry. This isn't another, “Genesis Mining is a scam even though I haven't tried it” things. In fact, I bet it's a perfectly decent business. I'm sure there are ways to make it largely profitable. My problem with cloud mining is not one of legitimacy. No. I'm afraid it goes much deeper…. It is my opinion (so, pretty much factual) that cloud-mining collectives can and will be the catalyst by which crypto currencies are fundamentally destroyed.
I know, I know. Bold claim. Just give me a chance to elaborate...let's review for a second. What are the primary utilities of Bitcoin?
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Here's my non-exhaustive list:
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If you haven't ever watched any documentaries on Bitcoin, I would recommend you do so. There are tons of them on YouTube (not that I support YouTube). Even if you are well-versed in the topic, I think it will serve well to be reminded how big of a deal this actually is. Bottom line is: Whether Bitcoin itself lasts forever or it dies tomorrow, this idea isn’t going away…
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"So…what do you mean?" |
Thank you. Yes. So the coins are obviously mined or purchased, which means the more coins you have, the more buying power you have. So the all you really have to do is basically buy a computer, leave it on all the time and you get free money. Money now grows on trees. Why anybody wouldn't want to take a direct part in this themselves is beyond me...
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"Yeah but difficulty es so HARD?! Hashpower es impossible!" |
Ok – good for you...and all that may be true, but there’s a little more to it than that. Let's talk about who really has the power in a proof of work ecosystem.
Did you know that each blockchain transaction is handled by and confirmed by miners? Essentially even when all the coins have been mined, the miners are still going to be in charge. If enough of them (51% to be exact) get together and have mal-intent, they can literally start denying valid transactions, demanding higher fees and we are literally right back where we started.
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"...yo what you talk'n bout?" |
Ummmmmmm....yeah. Exactly! Just think about it for a second. Would it really be that hard? Let me remind you of a couple of things:
First of all, in one of the more developed and opportunistic (slash disgusting) countries in the world, it is a well-known fact that less than 1% of the population owns close to 40% of its wealth. The game is rigged. I would venture to say, that these 1% pricks are relatively intelligent, and if they see the possibility of an economic shift to this degree anywhere on the horizon, they aren’t going down without a fight. They control the world today – they can do it again.
Which brings me to my final point. Computers are way easier to control than people, and the only barrier to entry is……..money. I feel like so many people (myself included) are so excited about the possibility of becoming a millionaire overnight (which by the way isn’t going to happen), that we are ignoring the potential negative side of proof of work and smart contracts. They don’t have morals. They will always, in every situation, from the day they are created, until the day they are retired, do exactly what they are told to do. If I were the richest person in the world, I wouldn’t want Bitcoin destroyed. I would want everyone to buy into it – and then I would just buy enough miners to have 51% control and then just start shitting on everyone so hardcore. Problem solved. How is that not a very realistic possibility?
This, my dear friends, is one of the many reasons why I’m not the richest man in the world. Because there is a much more brilliant scenario. Consider:
Right now, the vast majority of miners are sitting in a big-ass warehouse, and growing in numbers. The more these companies buy, the lower
the block reward, and the more difficult the process becomes – slowly making even the most powerful and energy efficient mining rigs obsolete.
All the while consolidating the power structure of the entire ecosystem into the hands of fewer and fewer people. Best part though…wait for it…
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YOU'RE PAYING FOR THEM |
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I understand the draw. Seems like an easy, effortless way to make a few bucks. Sign me up. But freedom is a very fragile thing. There comes a point where we have to realize that the whole "nothing comes for free" thing is not just meant to make people work harder, it’s actually true. Sure, you can get a couple altcoins here and there, maybe even enough to quit your job and just ask people to use your ref link on YouTube all day, but what’s ironic is that you are doing your part to make this whole system become absolutely worthless.
Bitcoin is not about money. It’s about freedom, community and not being an asshole. It’s about putting the power back in the hands of the masses. If all you want is money, I hope you get it quickly. I bet you will find out that the ones at the top who enslave you are all the more enslaved (then I’d burn my winnings). More importantly, though, I hope you will be sober enough to recognize that no matter how good of a person you actually are – no matter how pure your intentions are at the start – that you are more than capable of becoming what you hate.
“The love of money is the root of all evil.”
-1 Timothy 6:10
“Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”
-Lord Acton
Too serious? PROBABLY. But the world doesn’t need any more assholes.
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CLOUD MINING TOTALLY SUCKS. |
This is one of the best articles that explain why all cloud mining is bad. People just do not see it for what it is. Like you stated they think they make a few bucks without doing too much. Thanks for writing great content like this. Keep it up!
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I think it comes down to high risk/high reward. The risk is that you lose your money, the reward is, well, you make money. That is why you could cloud mine, then put it into another alt-coin that doesn't do proof of work....Steem anyone?
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