Bitcoin can process a maximum of approximately 576,000 transactions in 24 hours. (That’s the theoretical limit — the actual limit is closer to 350k). By contrast, even a small country like New Zealand (population < 5mn) carries out some 4.4mn financial transactions a day. The EU carries out some 274 million electronic transactions a daily, while the US carries out some 600mn (that may include stock and bond settlements too, I’m not sure). In short, Bitcoin couldn’t manage as the currency for a decent-sized city.

Not to mention that Bitcoin mining already uses as much electricity as the country of Iraq and almost as much as Singapore. Each single Bitcoin transaction uses as much electricity as 13 American homes use in a day. It uses as much energy as 260,000 Visa transactions. An incredible waste of resources. (see Bitcoin Energy Consumption Index - Digiconomist )

In fact, Bitcoin mining now uses more electricity than the output of all the solar panels installed in the world. It’s single-handedly offsetting much of the progress that’s been made in de-carbonizing the global economy. It’s an ecological disaster.

Bitcoin does nothing that currently existing systems don’t do much, much more efficiently and cheaply.

Oh, and did I mention how frequently the exchanges are hacked and all the Bitcoins stolen? And that its only so-called benefit, anonymity, is actually hackable too? And why do people think that enabling tax evasion and paying for illegal acts is a benefit anyway?

Via Marshall Gittler on Twitter.

Thoughts?