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#1 2021-01-18 12:05:28

Registered: 2020-11-20
Posts: 13

Classic cryptocurrencies vs. utopia ecosystem

Not all newcomers understand the mining system in the Utopia ecosystem. How, why, and why is it better?

Let's start by taking apart the features of classic mining:

1.    Too high hardware requirements. While ASICs are a highly specialized, high-performance solution for a narrow range of tasks, they are complex and expensive to manufacture and operate.
2.    Energy consumption. When using ASICs to support a bitcoin, etherium, etc. network, electricity costs are the lion's share of expenses.
3.    Peculiarities and nuances of "classic" cryptocurrency networks themselves. For example, the same bitcoin is bursting with many transactions: commissions can be $50 or more, making it very difficult to use it as a payment instrument.

It seemed to be just a nuance - find cheap electricity, space and everything will be fine!


All of the above can not be taken out of context, our context is the economic and political situation in the world: we need to understand the trends of the 21st century so that we do not create "rubbish" (bitcoin cash, bitcoin gold, Litecoin and so on).

The main trend of the late 20th-early 21st century is the fight for ecology. There are two ways to reduce harm to the environment: the first is to reduce emissions from various industries, and the second is to optimize the consumption of the products of those industries.

It must be understood that electricity does not come from nowhere: it is the product of the combustion of hydrocarbons or the decay of atomic nuclei, and power plant equipment itself cannot be produced without emissions. There is already a huge emphasis on energy consumption, and in the future, it will be a major prerequisite and criterion for the selection of one equipment or another. Let's keep that in mind.

The next trend of the 21st century is de-globalization. And, this process is characterized by numerous political barriers, speculation on energy sources and resources - the swings around the price of oil/gas is nothing short of spectacular, and electricity, as we remember, is the product of their combustion one way or another.

What is the output? For classical mining, the situation in the future does not look good: on the one hand bans, on the other - energy shortages, on the other - imperfections in the technology of the networks themselves. Even small miners can be easily caught simply by analyzing energy consumption statistics, and the "old" cryptocurrencies cannot grow in price indefinitely either. On top of that, there is an opinion that bitcoin was created to "drain" dollar inflation into it, which would also add fuel to the fire.

Ecosystem Utopia is devoid of these problems. All at once. The energy consumption to support the network is extremely low, the network is as distributed as possible, and the commissions are low. If Greta Thunberg had any idea what she was doing - I'm sure she would approve.

Of course, all of the above is just the author's thoughts. There is always something to argue about.


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