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Detractors of Bitcoin often point to its costs namely in the form of electricity used in proof-of-work mining and its perceived impact on the environment as reasons for why it will never be a sustainable alternative to traditional fiat currency. These detractors often believe that Bitcoin is fundamentally unscalable, or more likely, come from the power structures that fiat currency has enabled, such as government or centralized financial institutions.

In his presentation on the main stage of Bitcoin 2022, Dr. Saifedean Ammous delivered a presentation meant to underscore the invisible costs of fiat money, and how it has been used for centuries to economically oppress the average citizen of a fiat-based economy. Dr. Ammous has long been a supporter of Bitcoin, and has written The Bitcoin Standard and The Fiat Standard, both of which have helped educate numerous individuals about the advantages of Bitcoin and the corruption that is ingrained in most fiat states.

Dr. Ammous started his speech by focusing on inflation and how using fiat money helps back a system that is inherently unequal. Dr. Ammous specifically cited how fiat inflation is used primarily for the needs of the government, saying that The cost of fiat is currently 3.5% of all global wealth, and is used to finance government parasites, wars, and monopoly banksters.

He followed up by citing how fiat money often helps those who are already rich, and who have the ability to store their wealth in hard assets such as real estate, and often preys on the poor. He added that fiat parasites who are always talking about inequality, like Elizabeth Warren, Thomas Piketty, and WEF global leaders never mention this. It certainly seems as if the very politicians and leaders who preach for a more equal system are rather enabling and backing an economic model that is predatory on the very people they pledge to help.

Dr. Ammous then brought up a little-talked-about consequence of using fiat money: its impact on the health and nutrition of its users. He argued that governments often encourage their citizens to eat their sponsors industrial waste as a cheap alternative to organic and high-grade essentials. He also cited fiats impact in scientific reporting, especially in energy, saying that fiat scientists are telling us that windmills, a sixth-century technology, is what is going to be needed for the future. This is just an inflation cover-up. Of course, it is often these very same fiat scientists who attack Bitcoin over its sustainability, especially on ESG grounds.

For most Bitcoiners, myself included, it was the allure of using a currency that was independent from centralized authority and oversight that drew me down the so-called rabbit hole. However, I had neglected to think deeply about the extent of the detrimental impact fiat currency was having on my life, and the lives of billions of people all over the world. Fiat is not just government-controlled; it is government-enabled. Using fiat money powers a system that funds unhealthy eating, economic oppression and more. Dr. Ammous, as always, has managed to open the eyes of hundreds of orange-pilled Bitcoiners at Bitcoin 2022 through his creative and original thinking.

Dr. Ammous concluded his speech by rebutting the critics of Bitcoin who focus solely on its computing and electricity consumption: If you think a machine and electricity are not worth it for Bitcoin, kindly get rid of all your machines and use primitive alternatives.

Bitcoin 2022 is part of the Bitcoin Event Series hosted by BTC Inc, the parent company of Bitcoin Magazine.

This is a guest post by Archie Chaudhury. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Originally posted here:
Dr. Saifedean Ammous Explains The Hidden Costs Of Fiat At Bitcoin 2022 - Bitcoin Magazine

Image source: Getty Images

Musk owns Bitcoin, Ethereum, and Dogecoin -- and he's not selling.

It may come as a surprise to learn that Elon Musk -- a prolific crypto presence on social media -- is somewhat lukewarm on Bitcoin (BTC). To be clear, Musk does own Bitcoin, along with Ethereum (ETH), and his pet coin, Dogecoin (DOGE). But he's not as bullish about the granddaddy of cryptos as some might expect.

Let's dive into Musk's biggest concern -- the environment -- first, before looking at what the well known billionaire thinks of Bitcoin.

Musk's main concern about Bitcoin is its high carbon footprint. Bitcoin uses about the same amount of electricity as a country the size of Thailand each year, according to Digiconomist. Given he is the CEO of Tesla, an electric vehicle company that says its mission is to accelerate the worlds transition to sustainable energy, it's an understandable point.

Tesla owns a decent chunk of Bitcoin and its decision to accept BTC payments in February 2021 was one driver for the crypto's huge growth in the first half of 2021. In a similar vein, Tesla's subsequent decision to stop taking Bitcoin payments was a big factor in May's crypto slump. Since then, Musk has hinted that Tesla might start accepting Bitcoin payments again, but only if there's evidence that half of the mining is powered by renewables.

What's slightly strange in all this is that Dogecoin uses the same widely-criticized proof-of-work mining model that's so damaging to the environment. As it's grown, so has its environmental footprint -- its annual energy consumption is roughly the same as Honduras.

Putting the environment to one side, Musk told the B Word Conference last summer that Bitcoin could potentially change the way we use money. "In general, I'm a supporter of Bitcoin and the idea of cryptocurrency in general," he said.

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"It's best to think of money as an information system," he explained. That information exists in a series of databases, such as those in banks around the world. Musk points out that, with a few exceptions, the current system moves relatively slowly. Plus, he says in many cases it is not very secure. As a result, Musk thinks there is potential for a better system. "I think it makes sense to support something that improves the quality of information with which we conduct the economy."

"Bitcoin is a candidate," he said. It stands out because of its scarcity, decentralized nature, and open ledger technology. But Musk also raised the low transaction volume and high costs as issues that could hold it back. Plus, he pointed out the average person will find it difficult to use.

In terms of Bitcoin as an investment, Musk has stressed several times that he's not an investor. Nonetheless, he recently tweeted that at times of high inflation such as the one we face right now, it is better to own physical assets like property or stocks.

"It is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high," he tweeted. "I still own & wont sell my Bitcoin, Ethereum or Doge fwiw."

Bitcoin is the most-established cryptocurrency and many argue it's the "safest" in what is a high-risk asset class. As such, it's well positioned to survive a prolonged market crash and -- as Musk points out -- potentially change the way we use money. However, this is a relatively new and unregulated market and there's a lot we don't know about how it will evolve.

READ MORE: Best Crypto Apps and Exchanges

One golden rule is to only invest money you can afford to lose in Bitcoin. That way, you'll be able to benefit from any gains without facing financial disaster if it collapses. Before you invest, stock up your emergency fund and make sure you're up to date on things like your retirement savings. Don't prioritize crypto over your other financial goals.

When you see headlines about people who've become Bitcoin billionaires, it is tempting to go all in. Instead, try to make sure high-risk assets like crypto only represent a small percentage of your overall investments. Financial advisors increasingly recognize that Bitcoin can play a role in a balanced portfolio, but the key is balance.

Ultimately, the decision to invest in Bitcoin depends on several factors. These include your financial situation and your views on how Bitcoin might perform in the long term. And don't take Elon Musk's word about crypto -- or any other commentators for that matter. Do your own research into what Bitcoin might do, what the risks are, and how blockchain technology might evolve.

There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that's right for you, you'll need to decide what features that matter most to you.

To help you get started, our independent experts have sifted through the options to bring you some ofour best cryptocurrency exchanges for 2022. Check out the list here and get started on your crypto journey, today.

More here:
Should You Invest in Bitcoin? Here's What Elon Musk Thinks - The Motley Fool

Jackson City Mayor Scott Congers plan to make Jackson the first city in the nation to allow bitcoin as a payment option for city employees seems to have hit a major snag, as the state senate passed an amendment to a bill prohibiting local government from paying, compensating, awarding or remitting funds" in the form of cryptocurrency.

The bill comes shortly after the Tennessee Comptroller of the Treasury Jason Mumpowers February rebuke of Congers plans.

(The bill) is a bit of a hurdle for us, Conger said. Talk about small government and not wanting government overreach. And now we have government overreach via the state government telling local governments what contracts theyre allowed to enter into.

The amendment, added to bill SB 535 on March 4, 2022, requires local governments to get the written approval from the treasurer of the state of Tennessee to enter into a third party contract to provide options for those payroll conversions, Conger said.

Its rough, he said, adding to his statements on twitter that the state government does not understand the trend lines of the value of cryptocurrency.

Conger continually reiterates the fact that he was never intending to pay individuals directly in bitcoin, but rather simply make it an option for city employees to utilize if they wanted.

More: City employees could see cryptocurrency payroll conversion options next year

We were never intending to pay individuals directly, he said. It was going to be a third party option to do like deferred compensation. I guess they dont like competition with traditional investment opportunities.

Conger pitched the idea last year with the intention of allowing city employees to further diversify their incomes, as well as make Jackson more attractive to techindustries on the heels of expected industry booms following Blue Oval City and Georgia-Pacific.

I think its a great opportunity for us as a city to move the conversation forward not just in this one instance of cryptocurrency payments, but how we can look at the big picture and set our goals high as to what we want Jackson to look like in 10 years," Conger previously said.

Mumpowers letter of rebuke, which came shortly after Congers interview with the New York Times regarding cryptocurrency, and shortly before the amendment was added to the state bill, warned Conger that "such direct payments could run afoul of the Fair Labor Standards Act and other state wage laws."

Mumpower alluded to the rapidly changing landscape of cryptocurrency in his letter, saying that based on"significant fluctuation in the cryptocurrency market in recent days," his officewould "therefore urge you to remember your fiduciary responsibility to the citizens and to govern accordingly as you make such decisions in the future."

The amendment has passed the senate and now awaits Governor Bill Lees signature, as of April 5th, 2022.

Where does that leave Congers plan?

Were going to focus on education for our employees, and give them the opportunities to look at (bitcoin) themselves, and not give them a structured avenue approach that we were planning to, Conger said. Which wouldve made it easier for our employees, but well just have to focus on the education portion.

I will not stop. We will lead the way for bitcoin.

Have a story to tell? Reach Angele Latham by email at alatham@gannett.com, by phone at 731-343-5212, or followher on Twitter at @angele_latham.

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I will not stop: Jackson mayor responds to state bill blocking bitcoin options for city governments - The Jackson Sun