Vision

DEEPFUCKINGVALUE – ONE COIN TO RULE THEM ALL

Abstract

A truly decentralized and fair digital asset would allow people to be part of a state-less unbound international community, linked by strong ethical, libertarian, and free speech values. Digital assets provide a basis for community engagement, but the full potential is lost if founders can sell their coins without community approval. We propose a solution for creating a fair and engaging MEME coin, a MEME COIN 3.0, using a decentralized autonomous organization (DAO) for governance. We call it MEME COIN 3.0 because of its revolutionary tokenomics. It is a MEME COIN that has tokenomics that are unlike any others before it. The DFV (DeepFuckingValue) MEME COIN 3.0 project aims to provide to their community fun through features offered by the DFV network and set of tools. The DFV MEME embodies simplicity, fun, retail focus, and strong ethical values as well as a sense of craving for free speech, which is one of the underlying assets of the community. Unlike existing MEME coins all repeating the same models, DFV introduces unique components as well in the utility bound infrastructure that will be built around it.

Firstly, project founders are restricted from selling their coins without DAO approval. Secondly, DFV ensures a 100% fair launch with no unfair token allocations. All participants, including angels, seed participants, and private sale participants, receive tokens under the same conditions, with no lockup periods, we detail better the economics and steps to decentralization of the community when the project will be at a later stage of development. The goal is to minimize or eradicate selling pressure and to support an upward trajectory in both techno-economics and community engagement. Finally, there are no official release schedule, cliffs or vesting, just DFVnomics. All coins are circulating, which gives no space for manipulation of the price with low float and high Fully Diluted Valuation (FDV) nonsense! It doesn’t mean that external parties won’t be able to manipulate the price, we don’t mean to control external parties, we are free market.

The DFV founders will create a platform that will serve as the primary platform for community content, countering the clickbait nature of current social media. Daily content flows and partnerships with top brands will be exclusive to DFV token holders, linking materials to NFTs. Early participants receive DFV Founders NFTs and exclusive wearables, reinforcing community bonds. We will issue a chart which specifies what the values we share are and will enforce it once a year through the DAO and a staking mechanism.

Existing MEME coins often lack transparency and ethics, with founders dumping assets on their communities using sophisticated techniques, or not… DFV commits to never dumping on its community, implementing real-life incentives to drive demand for this asset.

The ultimate goal of DFV is to surpass Bitcoin in market capitalization by organically building and engaging the community.

1. Introduction

Digital assets on the internet are a useful instrument to cryptographically prove that a digital string of numbers is unique and can’t be replicated embodying the “no double spend” paradigm. In simple terms, this means that anyone anywhere in the world can transact value over the internet without the need of an intermediary like banks or credit card companies. This is a lot more eco-friendly and social-friendly than our current system and it was initially introduced with Bitcoin[i]. The current Web 3.0 ecosystem primarily comprises digital assets with little to no real adoption, in comparison to traditional systems like VISA, banking, other apps from Playstore 1 . There is also likely no potential for future adoption in the current model. This is because the primary utility of these assets is to be dumped on retail or unsuspecting participants through centralized and decentralized exchanges. However, most digital assets were intended to represent a “utility token” for the platform they are issued on or represent. In 2024 the utility of these tokens is mainly divided into two functions: staking and governance which together account for 99% of their utility. Staking is used greatly, but it is mostly there to dilute holders who do not stake, and governance is currently a meme, apart for a few successful project, which are making great advancement there, such as Polkadot for example.

Other platforms are attempting to implement additional utility by linking token ownership to points on their financial platforms, often offering more rewards and points on credit cards linked to their platform’s account then the income they actually generate, which is unsustainable. Despite initially appearing to be a good idea, the lack of adoption continues to marginalize digital assets and adoption lags. It currently shows that the approach for democratizing digital assets is broken.

In the past cycle, airdrops have emerged as one of the most common adoption strategies. New airdrop campaigns which involve trading and being active on these platforms now grant points that enter a complex calculation system. This system can potentially centralize power as the team launching the campaign can easily game it. This is another attempt to lure retail and unsuspecting participants onto their platform. We intend to revolutionize the airdrop mechanism with DFV, through a carefully thought airdrop, that will target a population that we believe will join the community and stick with it over the long term.

While cryptographic technology is revolutionary, to the same extent as Artificial Intelligence, as of today it still suffers from the inherent weaknesses of the “dump-on-retail” model. This model has been universally adopted by all these projects. Bitcoin and Ethereum are the only major successful exceptions of the early days. Creating completely fair and transparent digital assets is impossible under the current model as the standard practice involves founders, VCs, ecosystem funds and other entities holding tokens primarily to sell them, not to use them for their utilities. This creates significant selling pressure while demand remains low often resulting in a death spiral for participants. The current model is that projects create hype, get a humongous amounts of seed money, and don’t solve any real problems. While they do presale and seed rounds to VCs that are only looking for profits, and not be part of a community. This is highly toxic and unsustainable. Furthermore, it appeary that the projects build technology that often doesn’t ultimately link the tokens to their platform’s utility, which makes the tokens worthless and the whole Web 3 experience non sensical.

The cost of holding a digital asset with infinite selling pressure is extremely high. Consequently, more than 99% of digital assets available today have lost over 99% of their value over time.

In contrast we intend to do the opposite with “Deepfuckingvalue – One coin to rule them all – MEME 3.0”. The market and participants have realized that MEME coins are the best way to attract and build a community with common values on Web 3. People want to belong to something and have fun. Making money is still necessary but it has become secondary in the world of Web 3.0 granting ethical and fair treatment to all within the community. What matters most now is ethics through the whole adventure and keeping common values to get to a destination. Think about DFV as a plant, that grows eternally, fed by it’s community and redistributing its power through memes!

2. First Principles – Reclaiming Freedom with MEME Coin 3.0

In our contemporary geopolitical landscape a disturbing trend is evident. Governments and heads of state increasingly bear the hallmarks of mafia-like, despotic, fascist and totalitarian regimes infringing on our fundamental rights, especially the right to free speech. Bitcoin was born to fight the overarching power and monopoly of financial intermediaries. Ethereum was then created to become the decentralized computer of the world capitalizing on Bitcoin’s idea. Another type of digital asset was also created, but it seemed to be less serious, it was DOGE, the MEME coin godfather. A coin created only for fun. In the previous cycle MEME coins came to light as some of them started having more and more followers and people participating to the community. A series of MEME coins were created, until pump.fun appeared, and an nearly infinite number of MEME coins were created, only to disappear as soon as they appeared, rugging most of their users. The only winner here was the platform allowing to create a meme coin in an instant. This was a great experiment, it doesn’t fit, however, to the values of DFV. Furthermore, digital assets flourished with projects that were all about infrastructure, improving the technology, at the expense of the users. How to really attract users? After all the digital asset ecosystem is still a sort of zero sum game, and there is only so much one can milk out of it.  DFV was created in order to bring back “the power to the players” and try to entice an army of retail that are all linked through a same ideology, that can last through times, as a beacon in a world full of crap. In this context the idea of a truly decentralized and fair digital asset becomes not just relevant but essential. Bitcoin is a great invention and asset, but we believe it is now outdated and potentially flawed. Extreme concentration of Proof Of Work mechanism brought back the intermediaries, in the form of powerful mining corporations who control the network. It became clear to us that a new project, with well thought tokenomics on a truly decentralized series of POS platform was the future!

It is now time for DFV MEME Coin 3.0. Just as Bitcoin serves as digital gold and Ethereum provides the infrastructure for Web 3.0, the DFV MEME Coin 3.0 heralds a new paradigm for onboarding the masses into the decentralized future. This coin doesn’t represent a financial instrument, it is the embodiment of a stateless, boundless, international community with deep fucking values! A community united by strong ethical libertarian and free speech values offering a sanctuary from the oppressive grip of state control. We aim to build this community by showing the example, as we believe that this is how life should be, led by showing the example!

Imagine a world where the power of the DFV MEME Coin 3.0 enables individuals in oppressive regimes to circumvent censorship and reclaim their voices. Picture retail participants around the globe empowered to participate in a truly decentralized economy free from the manipulative influence of central banks and corrupt governments as well as “un-aligned incentives digital assets”. This coin is more than a financial revolution it is a spiritual awakening echoing the timeless quest for freedom and self-determination.

The DFV MEME Coin 3.0 is not merely about financial gains. It is about building a decentralized society where technology serves humanity’s highest ideals. By embracing this new paradigm we resist the encroachment on our liberties and preserve the fundamental right to free speech. We forge a path towards a more open just and spiritually enriched world.

As authoritarianism seeks to silence dissent the DFV MEME Coin 3.0 stands as a beacon of hope and a point of rally for those who want to express themselves. It ensures that the voices of individuals remain heard and protected, fostering a global community anchored in transparency, autonomy and resilience. Hopefully, people will embrace the DFV MEME Coin 3.0 and join the movement towards a decentralized future where real freedom and justice prevail.

3. DFV MEME Coin 3.0: Upholding Core Values

In any successful project or nation the founders must embody values of deep honesty, altruism, libertarianism, egalitarianism, democracy and justice. They must defend free speech and individual rights alongside private property, education and innovation. Achieving these ideals necessitates a new monetary system based on a fully trustless censorship-proof foundation. The value of such a system knows no boundaries. Currently the best examples are Bitcoin and Ethereum which stand as the only truly trustless networks in the digital asset market. However their technology have to evolve. The fact that people consider Bitcoin as a store of value doesn’t change the fact that its technology is out dated compared to new systems that are put in place. It doesn’t mean that Bitcoin itself doesn’t benefit of some properties that make it valuable, such as anti-fragility and other concepts that we can attach to it. However, for long term and to cater for the masses, it needs to be faster and cheaper, by several orders of magnitude.

With the creation of the DFV MEME Coin 3.0 we aim to champion all these values. This means that the founding fathers and mothers of our project will commit to never selling their coins unless they have community approval for strategic purposes. To ensure dedication any founding member wishing to sell their coins early will face a 99% slashing penalty, enforced by a smart contract which will burn these coins forever, as a selling from a founding member is considered as an eternal loss. This steep slashing mechanism reflects the level of commitment we expect from those involved from day one and the early community.

There are three ways for founding members to generate liquidity:

  • Sell their coins at a 99% loss without community approval: This severe penalty ensures that the most committed will not consider early liquidation.
  • Community-approved sales: Founders can sell a portion of their coins with community consent, through a DAO vote, provided they reinvest 5% of the proceeds into the DFV infrastructure project and community or public good. These sales will most likely go to strategic participants who will look to have enough coins to enjoy the yields generated by the ecosystem.
  • Hold and earn: Founders can choose to hold their coins and benefit from the income generated through liquidity provider (LP) positions in decentralized exchanges and other ecosystem generating income material, such as merch sales, goodies, income from events and more.

These measures ensure that the DFV MEME Coin 3.0 remains aligned with our core values fostering a robust trustless and innovative monetary system. By adhering to these principles we create a resilient community dedicated to upholding the ideals of freedom, equality and justice for all.

4. DAO Governance for DFV MEME Coin 3.0: A Blueprint for Efficiency and Community Engagement

As we currently observe Decentralized Autonomous Organizations (DAOs) struggle with low adoption rates in voting participation. This is probably primarily due to the time-consuming nature of the voting process and the lack of specific voting categories within the DAO structure. Critical business decisions especially those related to the development and technical aspects of MEME Coin 3.0 cannot be efficiently handled by community votes. These decisions are better made by a dedicated leadership team acting in the community’s best interests.

A notable example of a well-functioning DAO is DAO 0x36, which operates with full decentralization and is governed by its community. This model can serve as a blueprint for integrating effective governance within Deepfuckingvalue MEME Coin 3.0. The MEME Coin 3.0 DAO will be designed to address these challenges and ensure active participation and efficiency.

The DAO will have the right to a portion of the revenues generated by trading activities providing a constant stream of organic funding. Additionally, it will create MEMEs linked to NFTs with a share of the sale proceeds contributing to the DAO’s revenue. These MEMEs will have practical real-world value such as parking access and more adding utility beyond mere digital collectibles.

Voting within the DAO will be streamlined to focus on crucial matters: the unlocking and selling of tokens by the founding fathers and mothers. Only members holding a minimum of $10’000 in DFV tokens will be eligible to vote. Founding members will be excluded from voting on their own requests to unlock or sell tokens ensuring unbiased decision-making. Small holders will be able to delegate their votes to their favorite delegate.

Moreover the DAO could decide the percentage of income distributed to token holders, specifically those with a minimum holding of $100’000 in DFV tokens. A part of this income will be redistributed to a raffle style account, where users will be able to participate and which will randomly distribute a prize on a monthly basis to a lucky winner. This ensures that significant stakeholders have a say in the financial management of the project and that small holders can also become large holders and have a chance to participate in the community as an important voice.

To bolster financial stability the DAO will implement an algorithmic stablecoin linked to a yield-generating system and robust treasury management. This system will generate additional revenue streams leveraging Web 3.0 technologies to ensure sustainable growth and financial health. The algo-stable will be built on the model of the “Liquity Stable Coin” in partnership with their team, which we will improve to make it truly global. The most important aspect that successful algo-stables lack is the instant access to fiat by businesses. We will tackle that by a business first approach. Holding the algo stable will be attractive as a Real World Asset linked product and will also be attractive thanks to its instant transferability and nearly free cost of operation. This system is a system that has worked since the origin of times. Here, we posit that people holding DFV reflect people with deep values, and hence the coin itself will be more and more valuable as time passes and the community onboards people with these values. There will be the need to take some collateral to participate to the FIAT mascarade, but each time the loan is created or the RWAs are backing the system, we believe it will be for a specific purpose, which in theory and based on statistics, should end up as a net positive for the community.

For transparency and accountability all financial transactions and audit reports will be made publicly available, and will respect the highest accounting standards, without their burden.

Indeed, current audit and accounting adopt extremely complex and often useless standards, because of standardization and non-transparency issues. We believe that one of the properties of the blockchain is to allow accounting from first principles and transparency thereby simplifying audit to the extreme, and potentially rendering current audit firm practices obsolete and redundant. Daily audits will be conducted to maintain the integrity of the DAO’s financial ecosystem. This commitment to transparency will build trust within the community and attract more participants to engage actively, potentially enticing large institutional investors. It means that anything else that people will try to vehiculate as FUD will be automatically disconsidered, as the community will be clear about the standings of the project.

By learning from established models like DAO 0x36 and integrating innovative financial mechanisms the DFV MEME Coin 3.0 DAO aims to create a vibrant efficient and democratic governance structure. This will ensure the project’s long-term success and align with the core values of decentralization transparency and community-driven growth.

5. Empowering the DFV Community: A New Era of Engagement and Reward

A real grassroots community of young graduates, employees, scientists, traders and other members of the population interact every day in the DFV ecosystem, across generations. They know they will always find comfort in the discussions and topics being shared. Indeed the DFV community always finds a way to joke about anything and everything making each other’s day better. We aim to provide the DFV community with an extra tool that they can use with their hard-earned coins through their activities on social networks like Reddit, Discord, Tiktok, Snapchat and other ecosystems.

Introducing the new AI x Web 3 portal which will give access to the best experience of the DFV meme coin ecosystem. Based on information and topics such as GameStop, Keith Gill, Roaring Kitty and other legendary aspects of DFV users will be able to enjoy play and connect with others through organically created content on the website. DFV became a meme long ago and although we salute the meme coins created until now they all lacked the necessary infrastructure often being pump-and-dump schemes built by clever Web 3 masters to defraud retail customers—exactly the opposite of the DFV meme and ethos. We do not suggest that they are all this way, and we invite all the creators of these meme coins to contact us and participate to the founding of this new paradigm.

To participate in the DFV ecosystem the DFV community requires a one-time subscription fee of around $100. This subscription grants early members lifetime access to all website functionalities and provides $100 worth of DFV tokens. The second tier of membership begins at $1’000 worth of DFV tokens offering additional functionalities and access on the website. At the $10’000 tier users receive exclusive merchandise access to special events reserved for this level of holders and more. The next tier starts at $100’000. Holders at this level receive full access to all website functionalities eligibility for rewards participation in an ecosystem fund for health-related insurance and other issues for perpetuity. The ultimate goal of the DFV ecosystem is to create a sustainable city where people transact exclusively using the DFV currency or its stable coin backed currency. We can imagine that the DFV stable coin will increase in value against the USD stable coin. This city will offer an affordable yet attractive lifestyle in various parts of the world with free speech as a core value of the community. The tools built on the website will feed on DFV ecosystem information from the internet and wherever available training an AI bot to randomly create memes based on daily information. An airdrop system will allow the entire DFV community to be rewarded for their contributions.

This ecosystem will offer a unique blend of entertainment engagement and financial empowerment. Community members will earn tokens through their contributions whether by creating content participating in discussions or engaging in various activities within the ecosystem. These tokens can be used to access exclusive features, participate in governance votes or simply trade within the community.

Moreover, the integration of AI-driven content creation ensures that the DFV ecosystem remains vibrant and dynamic constantly evolving with the latest trends and information. This approach not only keeps the community engaged but also fosters a sense of belonging and collective creativity.

In essence the DFV ecosystem is designed to be a haven for its members, a place where they can find humor, camaraderie and financial opportunities. By leveraging the latest Web 3.0 technologies and building on the strong foundations of the DFV ethos we are creating a sustainable inclusive and rewarding environments for all participants. This project embodies the spirit of decentralization transparency and community-driven growth setting a new standard for what a meme coin ecosystem can achieve. The scammers will be taken care of through the staking of coins on the DAO to participate to the discussion.

6. Pioneering Meme on Taiko: A New Era of Decentralization and Innovation

The rise of meme coins in the digital asset ecosystem has underscored their significance. Platforms like pump.fun have seen a proliferation of meme coins many of which are redundant and primarily benefit the platform owners. This pattern is typical when a concept proves successful it is often replicated without innovation.

Recognizing the potential of meme coins we aim to push their boundaries. As entrepreneurs and pioneers we believe that memes represent the future of humanity. While Ethereum and Solana are popular blockchains for launching meme coins, we have chosen to align with the core principles of decentralization, censorship resistance and technological advancement by launching our coin on the Taiko network.

The official TNS (Taiko Name System) for our project is dfv.taiko. Securing this domain name is an achievement and we are proud to have it. We are also interested in acquiring deepfuckingvalue.taiko recently obtained by another user and we invite them to contact us as we would love to include it in our project.

Launching on Taiko is not just a bold statement it is also a pioneering move. We intend to establish ourselves as the primary and most robust MEME coin on Taiko driving user adoption transaction volume and more to this revolutionary and fundamentally positive project. Our experienced team of engineers is committed to the success of this venture, and we anticipate receiving grants from the Taiko community fund as well as incentives for liquidity providers on Taiko-based decentralized exchanges.

Our decision to launch on Taiko is a testament to our philosophy of supporting and collaborating with like-minded individuals. We appreciate the Taiko name which means “big drums” in Japanese and its resonance with our vision. We are already in contact with the Taiko founders who are unaware of our plan to launch on their chain. This surprise is our way of acknowledging their dedication to the first principles of the cypherpunk movement.

In summary our project is designed to harness the power of meme coins while staying true to the foundational values of the blockchain community. By launching on the Taiko network we aim to pioneer a new era of meme coins that combine humor, community and cutting-edge technology.

7. Innovative DFVNomics  for a Sustainable Digital Asset Ecosystem

The economics of a new digital asset designed to cater to potentially millions of people must be both straightforward and well-considered. Consequently, all functions will be embedded in the smart contract from the beginning. These contracts will only be upgradable through DAO votes as we believe that immutable smart contracts are not ideal for such a project.

Regarding economics the angels who committed to this project did so even before this whitepaper was written. Initially the soft commitments were intended for a small group of 10 people but this quickly expanded to 30 which we consider the hard limit. Each angel will receive 0.5% of the network for $5500 corresponding to a Fully Diluted Valuation (FDV) of $1.1 million.

The first question that arises is why there is a valuation, why there is a token and why the valuation is so low. We believe that game theory and social interactions must be managed through exchanges and a unit of account is crucial for a society that aims to evolve, build and create new technologies from nothing. It’s worth remembering that we live on a rock traveling through space at 107’000 kilometers per hour in equilibrium around a gigantic ball of fire where slight deviations could render life impossible. In our mammalian brains we need structure otherwise we end up in oblivion.

We started with this low valuation and distributed the initial tokens equally among early investors, a group without whom this project would never have come to light. The early participants had to accept the potential risk of losing 100% of their investment which is a significant and daunting step that few are willing to take. There was only an idea, words and trust. Trust is the glue of every human society, and we thank all the angels for their support based solely on trust.

With the funds from early investors, we will build and develop the image, branding, merchandise, website, automated airdrop strategy and go-to-market plan. We also wish to extend the community at a relatively low valuation to those we did not have time to inform.

The public round which will be conducted first through a Liquidity Bootstrapping Pool (LBP) mechanism, maybe on Fjord Foundry, but is yet to be finalized. However, we hope to have  significant traction reflecting the valuation decided by the community. The LBP pool will allocate up to 50% of the total supply. Proceeds from the LBP will partly fund the liquidity provider (LP) position on decentralized exchanges (DEXes) on Taiko. After the initial design of tokenomics in this paper, we have now redesigned them in the tokenomics paper.

These economics will be meticulously detailed and are designed to foster community adoption and justice among participants.

8. Surpassing the Bitcoin Market Cap: A DFV Perspective

The market capitalization of a digital asset does not reflect its intrinsic value but rather the strength of its community relative to long-term selling pressure. We theorize that in digital assets, market cap can be infinite and can multiply as fast as the growth of the community divided by the selling pressure. The growth of the community will depend on the successful implementation of an attractive ecosystem where users can produce useful content, simply.

To calculate selling pressure it is essential to understand the potential current and future selling pressures and how to manage them. Incentivizing holders to maintain their positions long-term is crucial, a strategy absent in many other digital assets. DFV has implemented a system that always incentivizes holders to accumulate more DFV tokens. This is achieved through a yielding utility governed by a fully decentralized DAO and token emission making it compliant with international securities laws.

Maybe, if the DFV community reaches 3 million people its total market cap could surpass Ethereum’s. The highly theoretical aspect of this calculation lies in the actual selling pressure that may arise from airdropped participants and retail investors who might sell their tokens for quick gains or due to irresistible opportunities. The price balance will be dictated solely by new users joining and remaining in the ecosystem.

Content creation will be crucial to retaining daily active users (DAUs). While more uncertain calculations to determine what it would take to surpass Bitcoin’s market cap are unnecessary here due to numerous variables it remains our goal. We genuinely believe that DFV is the money of the people.

9. Closing thoughts

There are a few considerations regarding DFV MEME Coin 3.0. The first aspect of it is the meme itself, why have we chosen DFV? We have chosen DFV because he represents the values that we adhere to. We do not want to do a dog coin, or a drum coin, or some random meme that has no significant meaning behind it, as the meme has to be here to last. How do we grow the community, how do we manage to make sure more and more people join and the meme becomes real and works out well. It is important to be equalitarian and also reward efforts being put into building the meme. So, we expect people who understand the true nature of DFV MEME Coin 3.0 to join en masse as the safe haven of MEME Coins. Whether DFV MEME Coin 3.0 is a success or not, we can not guarantee anything, what we can guarantee is that the research put into the project and the tech and thoughts in it are genuine, and that we have a goal that we bring a net positive to the world in general and to Web 3 ecosystem. We expect DFV MEME Coin 3.0 to be a game changer for all future digital asset projects.

[i] Enhanced Comparative Analysis of Energy Consumption and Costs: Traditional Banks vs. Bitcoin

To include the spatial and environmental impact of banks taking up valuable urban real estate versus Bitcoin miners often being located in remote areas, we will expand the framework.

Traditional Banks

  1. Energy Consumption
    • Data Centers: Banks operate large data centers for transaction processing, customer data management, and other operations.
    • Branch Offices: Energy consumption from lighting, heating/cooling, and equipment in thousands of branch offices worldwide.
    • Back offices: Include enormous buildings with people reconciliating large amounts of data which are corruptible
    • ATM Networks: Energy used by ATMs, including manufacturing, deployment, and operation.
    • Transport: Energy used for cash transport (armored vehicles) and employee commuting.
    • Calculation: To be measured in Gigawatt hours, because of all the energy related to this human activity.
  2. Space Utilization
    • Urban Real Estate: Banks occupy prime urban real estate, leading to empty offices that require heating/cooling, reducing potential housing or other productive uses and increasing the price of real estate for newer generations
  3. Cost
    • Operational Costs: Salaries, maintenance of branches, ATMs, data centers, etc.
    • Security Costs: Physical security, cyber security, fraud prevention.
    • Regulatory Compliance: Costs related to regulatory compliance and reporting.
    • Environmental Costs: Carbon footprint, paper usage, etc.
    • Real Estate Costs: High costs of urban real estate used for non-residential purposes.

Bitcoin and Digital Assets

  1. Energy Consumption
    • Mining Operations: Energy consumed by Bitcoin mining rigs, often measured in terawatt-hours (TWh), an order of magnitue lower than the banking system consumption.
    • Node Operations: Energy used by full nodes to validate and relay transactions.
      Transaction Processing: Energy used for processing transactions on the blockchain.
    • Development and Maintenance: Energy consumption by developers and maintenance of blockchain networks.
    • Energy saving: All the energy consumed by Bitcoin Miners is concentrated and can therefore easily be recycled, for example in Sweden where the heat generated by Bitcoin Miners is useful for Sweden’s vertical farming and other hydroponics.
    • Energy Grid Regulation: Bitcoin miners help energy regulation thanks to the full automation of the system, they will buy more energy cheaper and mine more Bitcoin, whereas this energy was lost in the past, thereby bringing higher efficiency to hydroelectric and other power generated through sustainable means.
  2. Space Utilization
    • Remote Locations: Bitcoin miners often use remote locations with lower real estate value, reducing the impact on urban housing and infrastructure.
  3. Cost
    • Mining Costs: Hardware costs, electricity bills, cooling systems.
    • Transaction Fees: Fees paid by users for transaction processing.
    • Development Costs: Salaries for developers, research and development.
    • Environmental Costs: Carbon footprint of mining operations, especially in regions relying on fossil fuels.

Enhanced Comparative Analysis

  1. Data Collection
    • Banks: Gather data on the number of branches, ATMs, data centers, urban real estate used, and their respective energy consumption.
    • Bitcoin: Use data from blockchain research (e.g., Cambridge Bitcoin Electricity Consumption Index) for mining and node operations.
  2. Energy and Space Conversion
    • Convert all energy consumption data to a common unit (e.g., TWh).
    • Assess the urban real estate occupied by banks and its potential alternative uses (e.g., housing).
  3. Cost Estimation
    • Estimate operational, spatial, and environmental costs for both traditional banking and Bitcoin.
  4. Environmental and Social Impact
    • Calculate the carbon footprint using standard conversion factors for CO2 emissions per unit of energy consumed.
    • Assess the social impact of urban real estate usage, considering potential housing solutions.

Example Calculation

  1. Banking Sector (Hypothetical)
    • Data Centers: 500 TWh/year
    • Branch Offices: 1000 TWh/year
    • ATMs: 10 TWh/year
    • Transport: 500 TWh/year
    • Urban Real Estate (Energy for heating/cooling unused space): 2000 TWh/year
    • Total: 4’195 TWh/year
  2. Bitcoin (Based on Recent Data)
    • Mining: 1200 TWh/year
    • Nodes: 0.1 TWh/year
    • Total: 1200.1 TWh/year

Final Comparison

  1. Energy Consumption:
    • Traditional Banks: 4’195 TWh/year
    • Bitcoin: 1200.1 TWh/year
  2. Cost Analysis:
    • Banks: Include operational, security, regulatory, environmental, and real estate costs.
    • Bitcoin: Include mining costs, transaction fees, and environmental costs.
  3. Environmental and Social Impact:
    • Banks: High carbon footprint and inefficient use of urban real estate, contributing to housing shortages and increased urban heating/cooling costs.
    • Bitcoin: Concentrated in remote areas, reducing urban impact but still contributing to environmental costs through energy consumption. However, these are now being offset through grid regulation and recycling of heat generated in remote locations for farming and other sustainable activities.

Conclusion

This enhanced framework provides a more comprehensive comparison of the energy consumption, costs, and spatial impacts of traditional banking systems versus Bitcoin and digital assets. Detailed data collection and analysis are required to make precise comparisons, considering all variables and external factors influencing each sector.