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Re: Debunking the waste of energy argument against Bitcoin
by
Jacques_Bittard
on 18/02/2018, 09:20:47 UTC
I´m tired of hearing the argument "but Bitcoin wastes more energy than
a whole country..." all over the mainstream media.

Here are a few reasons why the energy that is consumed by Bitcoin mining is not wasted:
1. The energy that is consumed by Bitcoin mining is the foundation of the security of the network
2. Proof-of-work is superior to other consensus algorithms like Proof-of-Stake and offers less attack vectors
3. Fiat currencies are supposedly backed by the power of the state... meanwhile the US military consumes more energy than Bitcoin mining per year
(this is a comparison of the military of a single country compared to a truly global currency)
4. No one is talking about the enormous costs of transporting fiat money, securing it and printing it in the first place
5. The mining of other commodities is extremely energy-intensive as well

If you take all these factors into account, Bitcoin may actually be less energy-intensive than traditional
fiat currencies. Besides, many mining companies have set up their operations in countries with an abundance
of renewable energies like Canada or Iceland. The days where Bitcoin was solely mined in rural Mongolia and China
may finally be behind us.



1. It is an inefficient system for security. PoS and newer solutions solve the same problem with a lot less energy.
2. You are claiming that PoW is more superior without offering an explanation.
3. You are using whataboutism, that is one of the low forms of demagogy. You are trying to compare the incomparable to put something into a better light. Please read: https://en.wikipedia.org/wiki/Whataboutism
4. Again you are comparing the incomparable.
5. Again you are comparing the incomparable.

If you want to compare bitcoin to something, then use other cryptoassets. And yes ASSETS not CURRENCIES. There isn't a single proper cryptoCURRENCY out there. The main thing that makes a quality currency is value stabilization. That the flow of currency is regulated in a way that it's value is predictable for the future years to come. This enables the economy to actually use finance as a practical tool. Without a stable value currency, it's impossible to calculate any projects that are larger then opening a lemonade stand. Bitcoin and any other crypto for that mater, still lack any mechanism for price stability. I hope that we will see some development with this in the future, but currently it is as it is. Because of this, cryptos are currently useless as currencies. Every business that "accepts bitcoin", actually still accepts FIAT through bitpay or similar service. Bitcoin is just a temporal payment solution started with marketing, not financial goals.
If you want cryptos to actually become currencies, and actually offer competition to central banking, create a system that actually does the same thing as central banks do - regulate the flow of money so that it's value will be predictable. Then you can actually calculate a business plan that's numbers wont change their value 50% in a week.