In real life, the Visa settlement time plays zero role — you pay, and you leave. If somebody charges you more than expected, you can revert this transaction, and leave visa to deal with it.

With Bitcoin, on the other hand, the transaction is set in stone. If you accept a transaction on face value that is then not verified, ie within the 10 minutes before somebody signs it, … you just lost money, and no-one can do anything about it. No-one to complain to. I don’t know a single company accepting unverified bitcoin transactions, but instead I know of a few that need 3 or 4 blocks before they will accept it as a payment. That is 30 or 40 minutes real time, as opposed to 0 minutes with Visa. So… no.

As for “actually saving energy” — who told you this nonsense? If you start counting end-user devices and banking server consumption, you also have put it in perspective with the scale at which it operates — ie globally. Bitcoin, by amount of transactions, is a tiny little fart in comparison to the global banking system, but it already uses enough energy to run whole of VISA and more. What will happen if Bitcoin attempts to scale to this size, is that every single one of the fat clients will have to process an amount of transactions that today only the ENTIRE banking system has to deal with. The servers will need to be larger that those of any single entity that exists today. How do you think that will go, in terms of energy consumption and finances? Only people who have capital comparable to today’s banks will be able to operate computers and networks that can keep up with the amount of data that is required. In addition to that, when every one runs a slim client, and all of those clients will have to synch up to the fat clients, verify signatures etc, how do you expect this construct to use less energy, since it does exactly the same amount of work multiplied by the amount of fat clients, all the while ALSO requiring miners?…

This is not an evolution. This is a dead end. The more time and money we spend on this, the less time and money we will have to find real solutions for real people in the real world.

Written by

Science Fiction, Tech, sarcasm, and philosophical ramblings about the Universe.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store