Richard Bucker

The 24k Hoax

Posted at — Nov 25, 2021

This morning started off with a thanksgiving WTF and a holy shit and my head is still spinning. There is so much wrong with bitcoin and it’s ilk it’s more like a qanon party than an investment club. Bitcoin cannot and will not take over the world. It cannot scale for world wide acceptance.

Visa 24K is a hoax

First and foremost bitcoin’s TPS rate is clocked in at 5-7TPS. (Nov 2021). By comparison the 2nd giftcard platform I designed and implemented was doing 15TPS in the first holiday season and the first GC system was 700+. This is first-hand information.

Second I also worked for a prominent aquiring processor through many “seasons” and every year the company upgraded it’s mainframes to the tune of millions per year for the seasonal traffic. I once knew the TPS rating, however, the GC volume passed through the mainframe to the Sun Micro which did the 700+tps.

If you consider the number of datacenters that visa hosts world wide and the number of branded credit and debit cards… 24K is probably too low an estimate.

ask me why

The second problem for bitcoin is that 21M coins at $100K per coin cannot represent the economy of the world. At $21T it’s the US GDP in 2021 but nowhere near US or international value.

1 satoshi = 0.00000001 BTC

At today’s price a single satoshi is worth $0.0006. That’s about 6% of a penny. If BTC get’s to $1M per coin then a satoshi will be worth $0.01 or a penny. The thing of it is you do not transact in whole coins.

Third, the bitcoin MAGIC … it may seem like it’s open source and community controlled… but it actually a VERY small group and they make mistakes. Well documented ones. They may be smart but ask anyone who has been burned by electronic trading and it’s a nightmare.

Lastly, bitcoin is still traded in the local fiat currency. I should not have to say much more about that.

The Reason bitcoin is going to lose the TPS race is several fold. First and foremost it’s because [a] the actual resource cost and depreciation per transaction [b] In the end even though there are so many CPUs/GPU/ASICs trying to solve the problem there is only one winner [c] the typical CC system does a simple hash lookup and an addition.

bitcoin is profitable like uber is profitable for the driver

Once everyone has taken their vig you’re going to be naken in the rain.