In the past decades, people bought into the idea of Bitcoin 🟡.
They think Bitcoin is the future of money simply to believe:
👉 store of value
👉 hedge inflation
👉 potential high returns
👉 24/7 market opens
👉 open source
👉 and many more
which outweighs the risks:
👉 limited use
👉 potential lost everything through loss of wallets
👉 unknown technical flaws
👉 built-in deflation
👉 no valuation guarantee
👉 highly speculative
👉 easily influenced by the market/whales
👉 haven't proven long term investment
👉 scalability challenge
👉 and many more
Both lists can go on for a while, depending on market evolution.
Each point is a great debate topic that one can research deep into and find pro and con lists.
But I want to focus on the energy consumption of Bitcoin in this article ⚡.
As you may know, I am a super bad on the investment and pick $Luna as a potential investment. So you want to verify my search 🛸.
😅 Here we go.
🔋 Bitcoin energy consumption
Here are breakdowns:
Single transaction: 1,173 kWh ~ $173
Annal total footprint: 123.75 TWh ~ $11.03B
research to identify cryptocurrency's energy usage will rise another 30% or additional 32.5 million metric tons of carbon dioxide a year to put more social burden on the economy.
New York City has been looking to ban Bitcoin mining for two years, but the city decided to drop the
banning bill at the last minute.
There are two sides to the debate on energy consumption and whether it will be sustainable in the future.
The result can be drastically different depending on how you look at the issue.
Banks can cost more than Bitcoin if you count all banking operations as a whole.
Or you can argue that Bitcoin costs more than the entire
country of Argentina's power consumption is.
But here, I will show how Bitcoin can change the energy industry.
1️⃣ Natural monopolies
Energy companies are
natural monopolies. They do not concern about innovation that much but dominating the market.
Bitcoin gives them a reason to innovate. If they can produce cheaper power with more energy output, they have a greater
margin of profits.
Energy companies spend money to
protect from replacement by providing better and cheaper energy to consumers.
Bitcoin can push them to enter a competition to provide better services through technology innovation.
3️⃣ Support valuation
Energy companies can support the value of Bitcoin to make it restore its valuation rather than a speculative asset.
4️⃣ Government regulations
The government can easy to regulate energy companies and Bitcoin indirectly. It benefits both sides.
🤔 My thoughts:
I will not guarantee that is a future of Bitcoin, but it seems energy companies entering into crypto is a better outcome than the bank will do.
What is the point of buying and holding to praise for the price to increase at any time in the future without ever using it in the future 😏?!
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