Bill Gates Sounds Alarm Over Bitcoin Power Consumption - Here's Why Crypto

 Bill Gates Sounds Alarm Over Bitcoin Power Consumption - Here's Why Crypto

TOPLINE As Bitcoin approaches new heights, billionaire philanthropist Bill Gates is sounding the alarm over the cryptocurrency's astoundingly high carbon footprint, which will only get worse as the massive adoption of the world's largest cryptocurrency is expected to skyrocket.


  • Bitcoin uses more electricity per transaction than any other method known to mankind,Gates said in a recent interview with the New York Times, calling himself a bitcoin skeptic and adding that this is not a very good climate problem.

  • According to Gates, Alex de Vries, a data scientist at the Central Bank of the Netherlands, estimates that each Bitcoin transaction requires an average of 300 kg of carbon dioxide (CO2), which is equivalent to the carbon footprint generated by approximately 750,000 Visa card swipes.

  • This is because almost all cryptocurrencies, including bitcoins, document every transaction in a so-called public ledger, which helps ensure transaction transparency and security from unauthorized access, but constantly requires additional storage space or blocks.

  • Blocks are created by miners who reward Bitcoin for their work by executing code around the clock on special equipment called rigs - a process that uses the same amount of energy per year (about 78.5 terawatt hours) as countries like Chile. , Austria and Finland. ...


Mining is the process that makes Bitcoin extremely energy intensive in nature, as the currency requires a huge amount of ... computation to achieve its ultimate goal of processing financial transactions without intermediaries (peer-to-peer networks),says de Vries, who created Digiconomist, a website. tracking bitcoin energy consumption in 2014


According to Digiconomist, a single Bitcoin transaction uses approximately 707.6 kilowatt-hours of electricity, which is equivalent to the power consumed by the average U.S. household in 24 days. Bitcoin consumes more energy annually than all countries except 38, which corresponds to countries like Finland, Chile and Austria.


China's Inner Mongolia region plans to close its cryptocurrency mining projects by April after failing to meet government-set energy-saving targets in 2019. The US hasn't taken action at the federal level, but some states, such as New York and Washington, have already taken action. restrictions on mining have been issued.


We believe the cryptocurrency will ultimately be fully powered by clean energy, which will eliminate its carbon footprint and spur the adoption of renewable energies around the world, Square CEO Jack Dorsey said in December when the company announced the launch of its Bitcoin investment initiative. Clean Energy Investment Initiative, a $ 10 million fund for companies that make Bitcoin mining more energy efficient.

Bill Gates Sounds Alarm Over Bitcoin Power Consumption - Here's Why Crypto

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