The Wolf Den #212 - Does Mining Use Too Much Energy?
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This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Does Bitcoin mining use too much energy?It is no secret that Bitcoin mining consumes energy. Someone who knows nothing about Bitcoin can deduce this from the heat and noise emitted when standing next to a rig. Attacking Bitcoin’s electricity consumption from an environmental perspective has become a popular trend, but is this reasonable? Let’s start by examining how much electricity Bitcoin actually consumes.Researchers disagree on the exact amount of energy that goes into Bitcoin, mining due to unaccounted-for private miners, but a general consensus is around 121 terawatt-hours a year. When researching this number, you will likely find that Bitcoin’s energy use is equivalent to or more than a small country, like Argentina or Norway. To make it sound worse, only 30 countries consume more energy than Bitcoin. Nobody doubts Bitcoin uses significant amounts of energy, but is its consumption really an environmental problem or just something critics unjustifiably poke at?From another perspective, there is a long list of far more damaging energy consumers than Bitcoin. Air conditioning accounts for roughly 10% of the world’s energy consumption, what experts call a “critical blind spot in today’s energy debate.” If this was surprising to you, you may also be interested in learning that the U.S. military and gold mining consume more energy than Bitcoin. Furthermore, clothes dryers are also above Bitcoin mining consumption, and research shows, “80% of U.S. households have a clothes dryer.” Failing to understand these statistics when participating in the Bitcoin debate begs the question if the critic is a true environmentalist or if they secretly dislike Bitcoin aside for a reason other than energy consumption.My recent podcast interview with Peter Wall from Argo Blockchain, one of the top Bitcoin miners in the world, offered some valuable insight into the energy debate. Just recently, Argo Blockchain announced the first green mining pool powered by sustainable clean energy. His company’s mining efforts are almost entirely hydroelectric, unlike other legacy miners that still rely on coal and natural gas. But what really caught my attention was the idea that virgin Bitcoin could increase in demand and eventually hold a premium. Virgin Bitcoin can take multiple definitions, but from an energy perspective, it’s 100% green Bitcoin that had 0 negative environmental impacts. Considering the EPA’s growing presence and an abundance of federal regulations on corporations, the incentives are in place for virgin Bitcoin to increase in demand.There is hope that Bitcoin mining becomes less of an environmental concern, even if the opposite feels more likely. By the very nature of the Bitcoin network, the more miners competing to solve a block, the stronger the network becomes, and the more energy is consumed to run the system. That being said, governments are cracking down on the methods, as seen with China banning mining in inner Mongolia due to the poor practices conducted in the region. Bitcoiners by nature strive for progress - reckless abandonment to secure the next block is not the norm, it is the exception. My intentions are not to bury the mining debate, but rather view it from a utilitarian perspective that recognizes significantly more global good than evil - a viewpoint I hope both sides of the disagreement can stand behind.In This Issue:Bitcoin Thoughts And AnalysisAltcoin Charts5 Bullish Candlestick PatternsTaco Bell's Historic April Fools' CampaignMorgan Stanley Is Taking Bitcoin SeriouslyCoinbase Will Have Its Direct Listing On April 14thThe Best Crypto Twitter April Fools’ Joke... BitcoinLiteMy Recommended Platforms And Tools
The Wolf Den #212 - Does Mining Use Too Much Energy?
The Wolf Den #212 - Does Mining Use Too Much…
The Wolf Den #212 - Does Mining Use Too Much Energy?
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Does Bitcoin mining use too much energy?It is no secret that Bitcoin mining consumes energy. Someone who knows nothing about Bitcoin can deduce this from the heat and noise emitted when standing next to a rig. Attacking Bitcoin’s electricity consumption from an environmental perspective has become a popular trend, but is this reasonable? Let’s start by examining how much electricity Bitcoin actually consumes.Researchers disagree on the exact amount of energy that goes into Bitcoin, mining due to unaccounted-for private miners, but a general consensus is around 121 terawatt-hours a year. When researching this number, you will likely find that Bitcoin’s energy use is equivalent to or more than a small country, like Argentina or Norway. To make it sound worse, only 30 countries consume more energy than Bitcoin. Nobody doubts Bitcoin uses significant amounts of energy, but is its consumption really an environmental problem or just something critics unjustifiably poke at?From another perspective, there is a long list of far more damaging energy consumers than Bitcoin. Air conditioning accounts for roughly 10% of the world’s energy consumption, what experts call a “critical blind spot in today’s energy debate.” If this was surprising to you, you may also be interested in learning that the U.S. military and gold mining consume more energy than Bitcoin. Furthermore, clothes dryers are also above Bitcoin mining consumption, and research shows, “80% of U.S. households have a clothes dryer.” Failing to understand these statistics when participating in the Bitcoin debate begs the question if the critic is a true environmentalist or if they secretly dislike Bitcoin aside for a reason other than energy consumption.My recent podcast interview with Peter Wall from Argo Blockchain, one of the top Bitcoin miners in the world, offered some valuable insight into the energy debate. Just recently, Argo Blockchain announced the first green mining pool powered by sustainable clean energy. His company’s mining efforts are almost entirely hydroelectric, unlike other legacy miners that still rely on coal and natural gas. But what really caught my attention was the idea that virgin Bitcoin could increase in demand and eventually hold a premium. Virgin Bitcoin can take multiple definitions, but from an energy perspective, it’s 100% green Bitcoin that had 0 negative environmental impacts. Considering the EPA’s growing presence and an abundance of federal regulations on corporations, the incentives are in place for virgin Bitcoin to increase in demand.There is hope that Bitcoin mining becomes less of an environmental concern, even if the opposite feels more likely. By the very nature of the Bitcoin network, the more miners competing to solve a block, the stronger the network becomes, and the more energy is consumed to run the system. That being said, governments are cracking down on the methods, as seen with China banning mining in inner Mongolia due to the poor practices conducted in the region. Bitcoiners by nature strive for progress - reckless abandonment to secure the next block is not the norm, it is the exception. My intentions are not to bury the mining debate, but rather view it from a utilitarian perspective that recognizes significantly more global good than evil - a viewpoint I hope both sides of the disagreement can stand behind.In This Issue:Bitcoin Thoughts And AnalysisAltcoin Charts5 Bullish Candlestick PatternsTaco Bell's Historic April Fools' CampaignMorgan Stanley Is Taking Bitcoin SeriouslyCoinbase Will Have Its Direct Listing On April 14thThe Best Crypto Twitter April Fools’ Joke... BitcoinLiteMy Recommended Platforms And Tools