Bitcoin might have outperformed the global bond market in 2019, but it remains a bad investment, believes Roy Sebag of GoldMoney (TSX: XAU).
The founder & chief executive officer last week presented bitcoin as a system that spends billions of dollars off its annual earnings to merely survive. He referred to miners, a network of cryptocurrency diggers, that roughly contribute 65,000 Petahashes worth of computation power to maintain the Bitcoin blockchain.
That power comes from annual electricity consumption worth around $7.5 billion. Furthermore, the cost of preserving mining rigs brings the total yearly spendings to operate the Bitcoin blockchain to about $10 billion – more or less.
“And that $10 billion a year is owed to the miners by the owners…