Bitcoin power consumption is a heated debate

 Bitcoin power consumption is a heated debate

How much energy does Bitcoin consume? This is an issue that has been debated for years, especially when prices rise. The recent jump to a new high of $ 58,354 has certainly revitalized the debate. This question usually comes up with a host of other constant criticisms: it's a scam, it's too volatile to save, it doesn't work as a means of payment, it's used for illegal activities, it's unsupported, the dog ate my bitcoin wallet

How wasteful Bitcoin is

Naturally, there is a political element to the bitcoin energy debate. There are reasons why some people might want to highlight or even exaggerate the energy consumption of bitcoin, just as there are ideological reasons why people want to reliably protect it. To resolve this debate, we must put aside emotional rhetoric and investigate the facts using rational arguments and a data-driven approach to get to the truth, a process that seems out of fashion in our post-truth culture.

Any objective use of energy by bitcoin must necessarily contain an application that considers such consumption in context and lists the broader benefits of the asset. After all, this is not a zero-sum game. Countless technologies and systems harm the environment, but when we compare them with their benefits - for example, for the economy, financial inclusion or human health - the question does not seem so obvious.

Bitcoin vs gold

Bitcoin does not compete with countries, however it does compete with competing assets such as fiat currencies issued by central banks or, more importantly, as a store of value with gold, a precious metal that is mined on an industrial scale every year.

Analysis by Simone Brunozzi, operating partner at tech investment firm Cota Capital, shows that mining gold is 50 times more expensive than mining Bitcoin and running the Bitcoin network. The production of gold for a wedding ring on one finger results in 20 tons of waste.

What about the bitcoin utility?

When discussing energy consumption, value must be taken into account.

Consider the humble air conditioner, for example. This marvelous invention has undoubtedly increased the productivity of factories, workplaces and classrooms around the world, but its impact on the environment is significant. The United States alone uses as much electricity annually for air conditioning as the United Kingdom as a whole, and there are over a billion one-room air conditioners on the planet - one for every eight people.

 Bitcoin power consumption is a heated debate

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