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RE: This is hilarious because it's true!

in #bitcoin7 years ago

Another aspect of bitcoin and other crypto-currencies that should concern us is the phenomenal energy wasted in their generation on server farms as computers work 24/7 solving cryptographic puzzles that serve no other earthly purpose but to create bitcoins by verifying previous blocks. Estimates of around 30 terrawatt-hours per year, a figure close to the total energy consumption of Bulgaria. One analyst estimates that the carbon footprint of a single bitcoin transaction is 118 kilograms of CO2, about the same as driving a car 300 miles or using all the energy in your house for four days - compared to a 50€ note that requires .025 kilowatt-hours, which is about the energy required to power a 60 watt lightbulb for half an hour. If you are an advocate for crypto-currencies as an investment, I think you also have to be very sure that they are worth the environmental cost.

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Yes, you are absolutely right. Bitcoin uses lots of electricity. This is frequently repeated by people entrenched in the naysayer camp.

Have you considered the huge amount of energy consumed by traditional financial transactions. Those big bank buildings downtown. The millions of credit card machines next to millions of cash registers using electricity just waiting around for the next customer. Server farms at Visa/Mastercard/Paypal/etc.

Financial transactions require energy. True. But don't forget that it applies to government money also.

Cryptos are working on improving transaction speeds and costs. The promise of cheap solar suggests cheaper energy for everyone as we look forward into the future.

How profitable has naysaying been for you. Don't you wish you had joined the other side 6 years ago?

100 years ago there were surely people riding horses who thought cars were for fools .

Paradigm shifts are tough. Bitcoin may not be the ultimate victor, but cryptocurrency/blockchain tech is here for keeps.

Fortunately, Bitcoin has a a way of aligning incentives in the case of energy consumption. Mining is a very low margin business, because of this, we have seen a centralization of energy in areas with cheap (or even free) energy. Right now green energy (hydro, solar, wind) aren't the cheapest way of producing energy, it is still much cheaper to burn coal/natural gas, however, someday green energy will be a much more cost effective way of producing energy. When that happens we will definitely see more mining operations utilizing green energy to maximize their small margin for profits.