Gold Shill Rips Bitcoin as Flawed Miner-Rewarding Monetary System

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 of the coin,” explained Sebag. “And so, when you look at the coin even today, when it’s valued at $13,000, that’s about $220 billion of market value. You have a monetary system, which is worth…