That is true! Environmental disasters, systemic pollution and the inefficiencies that create them are a major problem. People obviously don’t want to live in the middle of a toxic wasteland, and the quality of human life improves relative to the cleanliness of the ecosystem in which they live. If the world got too toxic, we couldn’t live, and that would be… well… bad.
However, the benefits of the industry have been a net positive for humanity as a whole; create efficiency in the ways we eat, sleep, travel and grow as a species. Due to industrial processes, we are much better able to focus on the arts, culture, charity and civic education. Industry has solved most of the planet’s basic needs and continues to do so with greater efficiency where freedom flourishes.
So a return to an unsystematic pre-industrial agrarianism is a romantic idea in some ways, but ultimately undesirable because too much of the world would starve and the other costs would far outweigh the benefits. However, in the face of the NFT bull run and boom, environmental activists have once again targeted Bitcoin’s industrial infrastructure to criticize them on the premise that proof of work for building blocks is a waste of money. ‘electricity.
Is Bitcoin a Waste of Energy?
Of course not! Each system has financial and ecological costs, but how many systems measure practical ROI?
People focus on consuming Bitcoin, but not on Visa, for example. Have you considered what Bitcoin can create per kilowatt versus what the centralized economy can do with the same kilowatt? All systems have consumption that is reused in the attempt to create additional value so that the efficiency gains can be sold to the world for profit. But the real question should be whether there is more profit to be made from using Bitcoin as an efficiency tool rather than other existing solutions.
The Bitcoin protocol is already more efficient than Visa at a very basic level, so why don’t we measure the value of Bitcoin per kilowatt? The reason is that BTC is the best-known implementation of a Bitcoin-style network, and outdated protocols like Ethereum are absorbing the rest of the mental bandwidth of the blockchain economy. Both networks are massively (and arbitrarily) inefficient, but they are popular due to the asymmetry of information available in the market.
But that’s a side note, as today’s dominant economy relies on massive data centers that are also extremely power hungry. They function as the product of indirect incentives to maintain the Internet infrastructure as the backbone of the modern economy, and they use the energy that people simply accept as the basis to maintain their standard of living. They do this because electricity consumption relative to economic output is extremely difficult to measure and the incentive to be “greener” is somewhat mixed.
Since metrics are all wrapped up in complicated math, they are easily overlooked!
How is Bitcoin green?
Before computers, energy consumption relative to overall profit was considered a fixed cost because it was difficult to change and even more difficult to measure accurately. So, a business plan can only consist of estimated costs versus estimated revenues, and entrepreneurs will try to balance them to realize profits. If things worked, business worked, but the incentive to increase something like energy efficiency was not really noticeable to industrial consumers who were inherently competitive, but not often cooperative. Before Bitcoin, most industries had only marginal incentives to cooperate with their competitors without layers of inefficient bureaucracy getting in the way.
Bitcoin changed that. For the first time in the history of the world, the best competitor would be held in perfect balance with his ability to be the best cooperator, while having a direct and calculable incentive to find proximity to the most efficient energy source in the world. world.
This had three major effects:
- Honest knots huddled near cheap power sources.
- An exponential increase in the efficiency of computer technology specializing in the creation of the supercomputer inherent in bitcoin.
- An incredible amount of cooperative research on efficient energy production and recycling.
Without Bitcoin, there is much less financial incentive to be more efficient with the power of computation and transfer of value, and when the incentives are weak things stay the same. People needed race incentives and gamification to be more efficient in the use of power! Bitcoin created this incentive, and the world is starting to reap the benefits as industrial miners recycle energy into greenhouses and research new ways to generate electricity.
As Bitcoin absorbs a growing share of the centralized economy, the inefficiency of poorly coordinated networks will give way to the efficiency of much more tightly coordinated value production that Bitcoin offers.
Imagine the day the infrastructure of Visa, Mastercard, PayPal, Venmo, ACH, Swift, FedWire, Western Union, MoneyGram and everyone else was replaced by Bitcoin. Not only does the world benefit from instant payments, 10-minute settlement times, and instant proof of all activity, it does so with the incredibly small and efficient carbon footprint of Bitcoin’s honest nodes.
But doesn’t bitcoin consume too much energy?
No, but BTC is! The hashing power of SHA256 (Bitcoin’s mining algorithm) is wasted on BTC by fools and crooks looking for a juicy block grant. Under the auspices of increased security, hashing power is reaching unprecedented heights and consuming absurd amounts of power while the network can only handle six megabytes per hour. Plus, the difficulty on BTC is actually a security issue! If a large number of mining machines were to suddenly be turned off, the network would be unable to find a block, which would have the effect of shutting down the network. Given that BTC nodes are poorly connected, largely behind TOR, and towing a shaky political line in places like China, such an event on BTC is plausible.
So, yes, BTC is extremely inefficient and wasteful.
However, in stark contrast, Bitcoin SV (which shares the global availability of SHA256) is capable of virtually unlimited financial transactions and valuable data per hour, and due to its more competitive nature, opens up more specialized transaction processing business models. . Instead of raw competition for block rewards, BSV creates opportunities to use a small amount of hash rate while providing value-added services such as high connectivity data services, asymmetric computing or a critical storage of archival data. So, for a fraction of the cost, Bitcoin SV can process orders of magnitude more payments and data across the globe, and that’s the real point.
We don’t need four credit card companies, thousands of banks, dozens of regional and international settlement rails, and 6,000 “cryptocurrencies”.
Bitcoin SV can truly replace ALL payment rails in the world, eliminate the need for unmeasurable energy consumption and put in place direct incentives to ensure that no arbitrary waste exists across the global economy. While providing near-perfect identity solutions, property rights management, secure personal and business data, and seamless integration of physical and digital lifestyles on the blockchain.
It is a goal worth pursuing for the good of the planet and for profit! And that’s what will make the important things really get done on all fronts. The next time you are looking for a green technological solution to all the problems in the world. Start with Bitcoin SV. It is the only tool that can replace ALL.
New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.