Community, Diversity, Sustainability and other Overused Words
Community, Diversity, Sustainability and other Overused Words
Open letter to the council explains how bad an idea this is
July 10, 2024 - Bitcoin volatility is clearly evident
Dear Mayor Brock and Members of the City Council,
I am writing to you today as a concerned citizen of Santa Monica and a PhD scientist and MIT-trained chemical engineer. Last night's decision to establish a Bitcoin Office within our city deeply concerns me, and I feel compelled to share the significant risks and adverse impacts associated with this initiative. My primary concerns revolve around the financial instability of Bitcoin and other cryptocurrencies, as well as the severe environmental consequences of Bitcoin mining.
Financial Instability and Risk
Bitcoin and other cryptocurrencies are notoriously volatile and lack the backing of traditional financial systems. Their value is highly speculative, and dramatic price fluctuations can lead to substantial financial losses. Given Santa Monica's current financial challenges, including difficulties in managing the City Employees' Pension Fund, underfunding our Police Department, and keeping our libraries open, introducing such a high-risk financial element into our city's portfolio is ill-advised.
El Salvador's adoption of Bitcoin as legal tender has been fraught with issues, including significant volatility and limited acceptance among businesses and citizens. The comparison to El Salvador is not a compelling model for Santa Monica, a city with vastly different economic and social structures. The potential for financial mismanagement and the risk to our already strained resources cannot be overstated.
Energy Use and Climate Impact
Bitcoin mining is an extraordinarily energy-intensive process. The energy consumption associated with mining operations globally is comparable to that of entire countries. This process relies heavily on fossil fuels, contributing to significant carbon emissions and exacerbating climate change. For a city that has made considerable efforts to ban natural gas and fossil fuels to combat climate change, adopting Bitcoin mining is a paradox that undermines our environmental goals.
The graph attached to this letter illustrates the projected energy demands from AI alone, which are expected to exceed all current energy production capacities in the USA. This does not account for the rising demand from electric vehicles (EVs) and other growing energy needs. Allocating our limited and valuable clean energy resources to Bitcoin mining rather than to powering homes, businesses, and EVs is a misguided use of our resources. Even if "clean" energy is used for Bitcoin mining, it diverts essential energy from more critical and sustainable applications, potentially driving up electric rates and reducing the availability of clean energy for necessary uses.
Take your time to read this article -- your jaws will drop once you see how much precious (climate-harming) energy Bitcoin mining alone uses. https://www.nytimes.com/2023/04/09/business/bitcoin-mining-electricity-pollution.html
Conflict of Interest and Oversight
The establishment of the Bitcoin Office and the involvement of the Proof of Workforce Foundation raises serious concerns regarding potential conflicts of interest. The lack of transparency about whether any city staff members are being compensated in Bitcoin and the absence of detailed information in the City Staff Report is troubling. Moreover, the implication that Santa Monica officials may have visited El Salvador to study Bitcoin operations without public disclosure further complicates the integrity of this initiative.
Federal authorities will undoubtedly scrutinize this program closely to ensure there is no personal benefit or misuse of public funds. The risk of legal and ethical violations is high, and the city must avoid any appearance of impropriety.
In conclusion, I urge you to reconsider and halt the establishment of the Bitcoin Office. The financial instability of cryptocurrencies, combined with the detrimental environmental impacts of Bitcoin mining, poses significant risks to our city. Our focus should be on sustainable and prudent financial and environmental policies that benefit all citizens of Santa Monica.
I trust you will take these concerns seriously and prioritize the long-term well-being of our community over speculative and potentially damaging ventures. We have far greater issues to deal with today, including crime, homelessness, our city's legal and budget crises, vastly inadequate police force, and a bloated city staff that is paid at least double what they should be. Please stay in your lane. Do your job and stop creating distractions that can also cause us greater harm.
Thank you for your attention to this critical matter.
Sincerely,
Houman David Hemmati MD PhD
Reader Comments(1)
BWVbwv888 writes:
Dr. Hemmati has done a great service to the city council and the SM community by posting these comments. Comparing SM to the current government of El Salvador , a dictator government whose current president says that it was a fair and democratic election ( NOT) is not a prudent way to go. Bucalli has given his people much needed medical care, free laptops, better education , etc. but all of this comes with a high price tag, especially when you consider making Bitcoin the national currency. Many on the SM CITY COUNCIL have roots there, but you should get yourselves better educated ( Just read several articles that you can find on the internet). Being on the City Council does not make you educated.
07/12/2024, 5:07 pm