In the headlines we see people claim Bitcoin’s energy usage is unsustainable and the most drastic energy consumption there is…
Bitcoin uses nothing close to the amount of energy used to mine gold, print fiat, or for the oil industry.
Here’s a quick comparison:
And printing U.S. dollars and fiat currency actually beats Bitcoin, but that isn’t talked about.
Why is the all the energy expended?
Well, there’s a few reasons and it is tied up into what makes Bitcoin as secure and decentralized as it can be.
And remember this is a global currency.
Electricity and Power Is What Backs Bitcoin
Often times people ask the question:
What is Bitcoin backed by?
That’s the easy answer.
Bitcoin is a currency with a backing and one that actually is finite.
Energy is everywhere around us, produced by either the oil industry or a sustainable one.
Now, these protocols work to help with consensus and ensuring the validity of transactions.
When someone goes against the network they get punished by not getting a reward.
No reward means that there is nothing to pay for the energy that they spent, which is why a 51% attack is almost impossible to do.
That is why energy use is so prevalent in Bitcoin – for a purpose that creates consensus and decentralization.
We are talking about a global currency instead of a fiat currency printed by one state.
Now there are downsides as this does use a lot of energy.
Which is where green and solar comes in (with companies like POWR).
As well, there are some nifty ways that people have been aiming to mine Bitcoin by actually saving energy and resources.
As a Water Heater or Heater
Bitcoin mining heats up computers heavily, and thus they typically need a cooling system.
Despite this, clever people have been turning off their home heaters during the winter and instead, mining Bitcoin, which cuts energy cost in heating while still keeping the house warm.
And even better, some people are using cryptocurrency mining as a water heating mechanism.
Altogether it helps keep water hot, mine Bitcoin and make money in the long run.
Green Solar Bitcoin Mining
And of course, the easiest way is to just use green energy.
By having a solar-powered house you not only make your own energy but your own Bitcoin.
Now it may not power a full mining farm (unless you are using a ton of different tesla powerwalls and solar tiles) but it is very sustainable for someone wanting to get into mining without spending too much money.
If you are looking for the most profitable coins to mine check coinwarz.com
Overall, the energy usage of Bitcoin comes in the short term while it helps rewire our society and change the money system.
Making incentives and money flow in a free economy is the easiest way to influence energy production and consumption in the right direction.
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Thanks for reading,
Your GCA Team