October 17, 2021. No. 38
We have heard and read this phrase in the news ad nauseam. We have reached a full saturation point. I have even heard him say it to friends and colleagues I know who do not even know what a wallet is, much less anything related to Bitcoin, but still, they transmit that phrase. The news is so widespread that it reaches a point of no return, and anyone echoes it. The society where we live is a consumer of news constantly, always glued to the cell phone or computer, connected to the internet. In this way, news like this is like gunpowder and does not have when it will end.
But not everything is as the news paint it, we are going to break down some points, where we will see the reason for its consumption until we understand why so much scandal, even when we know that it is not one of the most consumers. Let's do it.
How much does BTC mining consume?
- BTC mining consumes a little over 189 TWh.
- Represents 0.117% of all energy on the planet.
This represents very high numbers, obviously. The process of mining BTC is quite complex nowadays, and requires a really high computing base for every 10 minutes or so to generate a new block. The graphics cards themselves are of a high cost in the market and their energy consumption is high. If we add to this that mining farms require hundreds of them, energy consumption inevitably shoots up. Mining is based on mathematics to carry out the process known as Proof of Work (PoW), which is carried out to verify that a transaction itself has occurred, solving a mathematical puzzle through trial and error. The equipment is kept on for 24 hours, 7 days a week.
You have surely heard the phrase that mining BTC consumes more energy than an entire country. Indeed, if Bitcoin were a country, it would be among the 30 countries that spend the most energy. Amazing, right? But everything is overrated. Many statistics even give the US as a consumer of energy at Christmas, only using decorative lights, spending is higher than various countries such as Luxembourg, Paraguay, and El Salvador. This does not appeal to anyone. Only the general ignorance of BTC makes everyone want to talk about its consumption. We have already been saying it, it is tabloid press.
Did you know that talking about energy consumption does not equate to carbon emissions at all? You cannot say that something pollutes because it consumes a lot of energy, without first doing a little research. Above all, if you are not sure where that energy comes from, what is its source. The number is not entirely clear, many sources vary with respect to it, but all give that more than 50% of the energy is renewable. Some even claim that 75% of the energy used to mine BTC is renewable.
The following are classified as renewable energies:
- Solar
- Wind
- Hydroelectric
- Geothermal
If that were not enough, it increases every day. In addition to that, it is the highest % that you can see of the electricity mix in any country. The whole of Europe only reaches 49.5%. I know it will seem strange to you to compare Bitcoin with a country, but the world in itself is getting weirder every day, so anything goes.
The large mining farms use remote places in different areas on the planet that could already be found in disuse, due to the difficulty of bringing this energy to the population. In many countries, there is even a surplus of this energy annually.
Are you already seeing how the press does wonders when it wants a goal? Well, this is just beginning. If we compare Bitcoin with gold mining, or even with the banking system, the numbers would not even have to explain them. I think an image says more than a thousand words, here it goes.
There is ample evidence that the mining of gold is much greater than that of BTC and even more damaging to the planet. Not to mention the banking system, the one that is scared by the devastating advance in just 10 years of the main cryptocurrency in the market. Will all this be planned by the Banks? I do not believe it. It is true that their existence is threatened for the first time since they were implemented. People have opened their eyes and discovered that they do not need them to manage their finances. After all, in a bank, you deposit your money with negligible interest for a whole year. While they make millions moving your money from one place to another. And gold, which has gone from laughing at Bitcoin to only seeing its trail of smoke when it surpasses it at full speed in price. Sufficient reasons have these two to mount a discrediting campaign. Furthermore, gold mining directly affects the environment, with the amount of toxic waste it releases. The important thing is to look at yourself. "Some are able to see the straw in the neighbor's eye, but they don't see the stone in their shoe."
Elon Musk
We cannot stop talking about someone who has achieved what seemed impossible: Make BTC go to the moon with a Twit, or fall into depression. Never before has a small Twit with a broken heart had such an impact, not even when your ex sent it to you on Telegram. This person, this businessman, named Elon Musk, moves the crypto world at ease. Money moves the world folks, unfortunately.
Elon Musk announced on his Twitter that he invested $ 1.5 billion in Bitcoin, and the price increased by 10%, taking him to the moon in one of his rockets. Then he left another Twit again saying that Tesla (one of his electric cars) would accept Bitcoin as a form of payment. And the unexpected came. How is it possible that Musk accepts Bitcoin as a payment method? And the environment? If precisely Tesla is the opposite of pollution on the planet. To which then came the whole other story, of the heart and so on, backtracking. But I am not there. It is like a child who does not know what he wants and then he said again that if the energy was renewable, then yes. To all this, the market is suffering ups and downs, literally with every word of yours. This should be prohibited! Then the whole debate about energy consumption went viral once again.
If it is not clear to you, that Musk's Twits move the world, take a look at the following image.
From here, Musk, together with CEOs of other companies, began a campaign in favor of renewable energy. It is even stated that by 2030 Bitcoin mining would be complete with renewable energy. Seeing is believing. In any case, there is little time left.
Closing thoughts
It is evident that the energy consumption is, and that it is not low. If it is possible to reach 2030 with 100% renewable energy, then the story of energy waste ends here, and it only remains to hope that the BTC is taken seriously throughout the planet by governments. If it becomes the revolution of the entire world financial system, energy will not have been used in vain, otherwise, and the bubble bursts, which many call today, we would be facing the worst waste of energy of all humanity.
What do you think? Is Bitcoin a waste of energy resources?
Friends, this is the second entry for "2021 Bursting the Myth Around Bitcoin writing competition" organized by @SofiaCBCH. You can also participate if you wish. Don't let them tell you, live it.
You can see my first entry here: Bitcoin can be hacked
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Very good and informative article. I hope you are feeling better.