And it's far worse than that. All the Bitcoin asic miners, which are specialized computational units, must be built before they can do their job. Resources to build them like manpower, electronics, cable, housing, etc. are wasted as well. And then these machines can only do one job: calculate bitcoin hashes as fast as they can, burning lots of energy while doing so. After a while, when the machine runs out of the profit zone, it will go to the junk yard, all those costly resources wasted. It can't be even used as a calculator because it's so highly specialized!
Saying I'm naive is an ad hominem. POW being the biggest weakness of Bitcoin is just your opinion. The market obviously disagrees with you.
And the green energy is not just marketing, you can look it up yourself. Most large miners are next to hydro or other cheap energy plants that produce waste energy. Recent story: https://www.coindesk.com/bitcoin-miners-are-investing-again-expecting-a-cheap-power-boom-soon There is much research on this, it's not a matter of opinion. You're either unaware of the facts, or you're unwilling to accept them because it doesn't fit your narrative. Either way, you're wrong.
The narrative of Bitcoin mining running on green energy is a response to criticism that mining takes so much energy. Sure, there are some who use only green energy, but if Bitcoin miners are using green energy then it is because that that's what the cheapest energy there, not because they have some mission to only use green energy.
Also, if you as miner are not building new green energy powerplant for yourself, then you are using the green energy, which would have been used somewhere else before you came in as miner - this means that production of more energy needs to increased and you can't just ask for more wind or more sun or more waterflow.
Kind of reminds me the thinking of people who buy electric cars, thinking that if there is no smoke coming from their car, it means like they are clean, while the powerplants still produce the energy the same way.
You don’t fully understand this question yet.
There is such a concept as waste energy. It’s not just green, it’s waste. When you have a hydro plant it can produce x amount of energy it is designed for and it is usually more than the requirement especially at early stages. The rest unused capacity would go unused because there are no buyers. There is no industry nearby that can use it to turn a profit. Thus miners can buy this cheap waste energy to turn it into Bitcoin.
It’s both green and excess (waste) energy. It’s not new information. I said that from the beginning.
Yes. Many large miners only mine when excess energy is available indeed, otherwise they turn off the miners because they are not profitable. But it’s profitable somewhere around the world all the time which is why we see only small seasonal fluctuations in mining.
Yeah but you don't have to print cash, deliver cash, build and power giant cash printing buildings, power giant visa server farms or their company cars or buildings, etc etc etc etc so actually it's way less power than any currency or debit card system you use today or have in your wallet
Yes you can spend all your money on monopoly money and hope the price increases. Good luck! [https://www.amazon.com/Monopoly-Updated-Color-Money-Currency/dp/B00EPU9UP2/ref=sr\_1\_1\_sspa?keywords=monopoly+money&qid=1562462539&s=gateway&sr=8-1-spons&psc=1](https://www.amazon.com/Monopoly-Updated-Color-Money-Currency/dp/B00EPU9UP2/ref=sr_1_1_sspa?keywords=monopoly+money&qid=1562462539&s=gateway&sr=8-1-spons&psc=1)
Bitcoin is like the early internet, really fuckin mind blowing if you think about its creation but when you create something that has never existed you can't account for the problems it will cause. Bitcoin is revolutionary in a lot of respects, but is not an ideal system by any means and it is my estimation that in 10-30 years we will look at it like we did the interwebs in the 1990's: "wow that was so innovative back then but it's a large degree of magnitude in terms of functionality compared to what we have now." And all those people saying that it has no purpose you have most likely never lived in a place where hyperinflation occurred, to point out just one of its important possible uses.
It's pretty easy to stop actually. Just ban it. How are you going to transfer money into the account if your bank won't let you? There is a reason why all the exchanges are setup in super shady places and bitcoin isn't even banned yet.
Wow I didnt think of that! That might just work. Just like how governments throughout the world ban the sale, possession, and use of drugs. Thank god for governments, now we live in a world without drugs.
Bitcoin supply is capped at 21 mil. We are close to that cap. Every 10 minutes 12.5 BTC is rewarded to the next miner to mine a bloc, adding that to the available supply. May 2020 it will become 6.25 BTC reward. Every 4 years this supply added every 10 minutes is cut in half until its 0. By 2140 (est) there should be no more Bitcoin added to circulation. This is to mimic the scarcity and increasing cost to mine gold. Although soon we will have gold from asteroids and the typical asteroid contains more gold than we have ever mined on earth so its not going to be scarce as Bitcoin in the future.
"Although soon we will have gold from asteroids and the typical asteroid contains more gold than we have ever mined on earth"
The typical asteroid huh? Lol. Maybe *one* that is years of traveling away with no confirmed gold--"maybe some". But cost to mine anything there would be prohibitively and impossibly expensive. Utter nonsense
No. Only 12.5 Bitcoin every ten minutes on average. Used to be 50 Bitcoin every ten minutes. Every 4 years it halves. The last bitcoins will be mined in the year 2140. The more miners the harder it is to mine, to ensure 10 minute blocks/rewards.
Interestingly, article cites a source that contradicts the headline. The Joule paper puts the number at 45.8TWh. The main focus of the article has some guys putting the number at 58.93TWh. That's quite the discrepancy.
In general I have come to treat anything that cites Alex de Vries with suspicion. Amongst other things, the repeated discussion of the number of transactions and the power expenditure. The power expenditure does not scale by number of transactions. Associating the two without mentioning one is not a factor of the other creates a misleading impression. Doing so repeatedly suggests bad faith.
Bitcoin does use a lot of power though. On the other hand, the reward halving does mitigate some of this. If you are confidant that Bitcoin won't increase on average 20% every year forever then you should be happy that the problem will fix itself.
The current problem comes from the value rise being greater than the reward halving. To sustain that it has to double in value every 4 years _forever_. The early growth has been higher than that, but to just sustain current power levels BTC would have to be worth millions in a few decades.
Does this energy consumption come more from mining (i.e. finding the new bitcoins) or from transactions?
If the former, then the Bitcoin network should find a way to reward nodes for transactions in a more environmentally-friendly manner since mining should (in my understanding) disappear or become insignificant at some point.
I know the most people on here have a terrible opinion of bitcoin and cryptocurrency in general but I think a lot of the criticism based on energy usage and transactions per second is in bad faith. When you consider layers built on top of bitcoin (lightning network) this argument holds a lot less weight.
Missing from all of the discussions about this is the fact that almost all of the electricity is purchased with the mining reward, which is temporary. It is cut in half every 4 years, and will eventually dwindle to nothing. The amount of electricity Bitcoin miners can afford to buy therefore will fall.
Of course, until now that effect has been more than compensated by the increase in the Bitcoin price. But that certainly can't continue forever either, and so the electricity usage and carbon footprint of Bitcoin will inevitably fall in the future.
The sensationalism ignores that this tends to be trapped pockets of otherwise wasted surplus energy. Bitcoin creates a global energy arbitrage market for the first time. Energy can't be transported long distance, but it can be used to mine bitcoin. The benefits here are massive, including incentivizing cheap green energy, or the use of mining for ambient heating.