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2013-04-12 Washington Post "What Bitcoin teaches us about Internet’s energy use"
by
em3rgentOrdr
on 13/04/2013, 06:26:03 UTC
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/12/what-bitcoin-teaches-us-about-the-internets-energy-use/

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Over at Bloomberg, Mark Gimein calls Bitcoin — yes, Bitcoin — an “environmental disaster.” Why? Because all that processing power used to mine for new Bitcoins requires a staggering amount of energy:
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Mining is a process in which powerful computers create Bitcoins by solving processor-intensive equations. …
Blockchain.info, a site that tracks data on Bitcoin mining, estimates that in just the last 24 hours, miners used about $147,000 of electricity just to run their hardware, assuming an average price of 15 cents per kilowatt hour … That’s enough to power roughly 31,000 U.S. homes, or about half a Large Hadron Collider.
It’s a stunning stat, but does this really count as a “disaster”? That’s less clear. After all, we need to consider the counterfactural: Is it possible that these computers would be used for other activities and calculations anyway, if they weren’t mining Bitcoins?

Later makes the point that it is really wireless and 4G networks that consume the bulk of energy costs, not datacenters or bitcoin, citing: http://www.theatlantic.com/technology/archive/2013/04/cell-networks-are-energy-hogs/274961/