Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://www.socialistparty.org.uk/issue/1121/32037

From The Socialist newspaper, 17 February 2021

Cryptocurrency bubble: Insanity of capitalism

microchip, photo: Jon Sullivan/CC

microchip, photo: Jon Sullivan/CC   (Click to enlarge)

Amnon Cohen, North London Socialist Party

Low interest rates and the declining profit margins of capitalist production have pushed speculators to find new areas to invest their capital. This has created a massive bubble in cryptocurrencies.

In 2010, a bitcoin was worth $0.0008, and a bitcoin could be 'mined' with an ordinary laptop in ten minutes of calculations. Today the same bitcoin is worth $47,000.

This has created a massive industry of 'bitcoin mining farms' - warehouses where hundreds of thousands of servers are crunching through the calculations needed to mine new bitcoins. These farms consume more electricity than the datacentres of Google, Amazon and Microsoft combined, and more power than Argentina, accounting for 0.5% of global electrical carbon emissions.

Elon Musk, whose companies just received $4.9 billion in government green subsidies invested $1.5 billion in bitcoin, sending its price up by thousands of dollars and fuelling the expansion of these bitcoin farms. The expansion of these farms is the reason for the shortage of graphics processing units that they often use.

Under capitalism, vast amounts of power, computer hardware and technical expertise is used to perform socially useless calculations to create these cryptocurrencies, while needlessly boosting carbon emissions. Let's end this insane system and use the technology and resources at our disposal for the benefit of humanity, and not the profits of speculators.

Donate to the Socialist Party

Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our Fighting Fund.

Please donate here.

All payments are made through a secure server.

My donation

 

Your message: 

 


In The Socialist 17 February 2021:


News

Tory consultation on home-use abortion pills

Tory cladding money will not make us safe

Sham inquiry into 'progressive extremism' will not stop movements against capitalism

Cumbria mine: How can we fight for jobs and stop climate change?

Cryptocurrency bubble: Insanity of capitalism

News in brief


NSSN meeting

Online workers' rally: Taking fight to the bosses


Scotland

SNP's independence referendum 2 'roadmap'


NHS

NHS white paper: no solution to failed Tory policies

Boot private companies out of our NHS


Workplace safety

Covid workplace safety

Derby Toyota plant Covid crisis


Workplace News

Hackney teaching assistants strike against cruel and unnecessary job cuts

PCS: Reject the HMRC pay deal

Manchester Go North West bus drivers in all-out strike over fire and rehire dispute

London bus drivers set to strike over pay and conditions

Scaffolders' strike continues


Socialist Students

Strike back for free education

Socialist Students conference - Sunday 28 February


Campaigns

Socialist Party Black and Asian caucus

Remembering Mohamud Hassan - continuing the fight against police brutality

How you can amplify the Socialist's voice - Help us build subscriptions to the Socialist

Swarming the London Mayor's question time

Southern new members meeting - a vivid illustration of the appetite for socialist ideas

Doing all we can to fund the anti-cuts stand at the ballot box


Readers' Opinion

Film Review: Dear Comrades!

The Socialist Inbox


 

Home   |   The Socialist 17 February 2021   |   Join the Socialist Party

Subscribe   |   Donate   |   Audio  |   PDF  |   ebook






Related links:

Capitalism:

trianglePride flag is about unity in struggle

triangleLatest podcast - How can we fight racism and capitalism today?

triangleSham inquiry into 'progressive extremism'

triangleWhy I joined the Socialist Party - a student

triangle1971: Rolls-Royce crisis - when the Tories nationalised in order to secure the interests of British capitalism

Carbon:

triangleCumbria mine: How can we fight for jobs and stop climate change?

triangle'Building back greener' - yet more Tory greenwash

triangleJohnson emits huge quantities of hot air!

Technology:

triangleTechnology and AI response: Capitalists only invest for profit

triangleCan green technology and AI save capitalism?

triangleWaltham Forest Socialist Party: Can green technology and AI save capitalism?

Profit:

triangleSocial care: End privatisation and let workers decide how it's run

triangleBoot private companies out of our NHS

News and socialist analysis

News and socialist analysis

24/2/21

Schools

Johnson's 'road map' for schools: Act together to protect safety

24/2/21

Uber

Drivers win case - they are workers

24/2/21

Covid

Where's the road map to jobs and wages Boris?

24/2/21

Labour

Starmer's speech a return to New Labour

24/2/21

Covid

Garment workers and Covid: Dying for less than minimum wage

24/2/21

Privatisation

Social care: End privatisation and let workers decide how it's run

24/2/21

Vaccine

Vaccine algorithm can't solve capitalist inequality

23/2/21

Britain

The struggle needs an electoral arm

17/2/21

NHS

NHS white paper: no solution to failed Tory policies

17/2/21

Covid

Covid workplace safety

17/2/21

Independence

SNP's independence referendum 2 'roadmap'

17/2/21

Socialist Students

Strike back for free education

17/2/21

Abortion

Tory consultation on home-use abortion pills

17/2/21

Fire

Tory cladding money will not make us safe

17/2/21

Capitalism

Cryptocurrency bubble: Insanity of capitalism

triangleMore News and socialist analysis articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: [email protected]

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 075 4018 9052

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 077 0671 0041

ABOUT US

ARCHIVE

Alphabetical listing


February 2021

January 2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999