A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome.
Bitcoin 2 is a scalable Bitcoin 1:1 fork with private transactions and instant verified payments. Open source - Anonymous - Fast - Proof of Stake algorithm. All Bitcoin holders as of block 507850 (~February 5, 2018) got Bitcoin 2 on a 1 for 1 basis earlier.
The Bitcoin Electricity Consumption Fallacy - 3 time more effecient than global banking system
According to the article that trigger this discussion, Bitcoin annual Twh consumption is 28.67 , so currently more than 3 times more efficient than a very conservative calculation of the cost of the global banking system Source
Satoshi’s Take On Bitcoins Electricity Consumption:
It’s the same situation as gold and gold mining. The marginal cost of gold mining tends to stay near the price of gold. Gold mining is a waste, but that waste is far less than the utility of having gold available as a medium of exchange. I think the case will be the same for Bitcoin. The utility of the exchanges made possible by Bitcoin will far exceed the cost of electricity used. Therefore, not having Bitcoin would be the net waste.
Resources for Bitcoin electricity consumption and carbon footprint?
Hey guys, I'm writing a paper on Bitcoin mining, and I was wondering if there were any resources out there on electricity consumption history and carbon footprint of mining, specifically, the Antminer pool, and even more specifically, Bitmain's Ordos mining facility in Inner Mongolia. I'd like to know power consumption history, where the power comes from, how it's generated, etc. Thanks in advance!
The debate rages on as bitcoin electricity consumption increases… Earlier this year, we published an article on bitcoin electricity consumption, reporting how Iceland has become one of the top locations for cryptocurrency servers, which now exceed the consumption of private energy users. Now, the criticism amongst ecological circles and the debates around bitcoin electricity consumption have been fuelled by a paper by Alex de Vries of PwC’s Experience Center in Amsterdam. His paper, Bitcoin’s Growing Energy Problem, concludes that bitcoin’s electricity consumption could soon be heading above a consumption rate of 8 gigawatts (GWh) per year. The paper’s findings:
At the moment, the bitcoin network consumes at least 2.55 GWh of electricity – as high as the annual energy consumption of Ireland.
This could reach a consumption of 7.67 GWh in the future – close to the energy consumption of the entire nation of Austria (8.2 GWh).
By the end of 2018, the mining of bitcoin could be using as much as 0.005% of the entire world’s energy use.
The reality is that bitcoin uses a massive amount of energy. Author Alex de Vries says: “The bitcoin development community is experimenting with solutions such as the Lightning Network to improve the throughput of the network, which may alleviate the situation. For now, however, bitcoin has a big problem and it is growing fast.”
Why does bitcoin mining require so much energy?
The bitcoin mining process uses computers with software that can solve complex mathematical problems. A new block is added to the blockchain every time a new problem is solved, rewarding the miner with bitcoins. This process requires a lot of energy because the computers need to ledger all the transactions so that the same coins aren’t spent twice – this takes time and consumes a lot of electricity.
How can bitcoin electricity consumption become sustainable?
De Vries’ research reveals that if the price of bitcoin continues to go down, and the amount of energy needed to mine it continues to rise, bitcoin investment could become inefficient. One of the ways this can be avoided is if the world shifts to 100% renewable energy in the years ahead. With renewables, the environmental and efficiency concerns around bitcoin energy usage would be negated.
But is it possible to go 100% green?
New research from Renewable and Sustainable Energy Reviews journal found that a shift to total renewable energy using contemporary technology is both possible and affordable. Co-author of the research, Brian Vad Mathiesen of Aalborg University says: “There are some persistent myths that 100 percent renewable systems are not possible. Our contribution deals with these myths one-by-one, using all the latest research. Now let’s get back to the business of modelling low-cost scenarios to eliminate fossil fuels from our energy system, so we can tackle the climate and health challenges they pose.” If we were to eliminate fossil fuel usage, this would eliminate the environmental and efficiency challenges caused by energy-intensive bitcoin mining. It’s not impossible to imagine a world in which bitcoin is used exclusively, backed by green energy. If there’s one thing we’ve learnt over time, it’s to ‘never say never’…
So a Bitcoin skeptic colleague at work just said they read somewhere that the Bitcoin network today uses as much electricity as Denmark and in 18 months will use as much as the US. My response was as follows: This particular issue is really limited to the miner universe, and does not affect the rest of the ecosystem. New hashrate will join the Bitcoin network only to the extent that the marginal cost of mining as they move from low priced electricity regions to higher priced ones keep pace with the block rewards and transaction fees they can expect to earn.If BTC price can keep pace with miner revenue then it doesn't matter if more and more hashrate joins the Bitcoin network and uses as much electricity as the US does. If the price of BTC subsequently drops the network will not "collapse" if half the miners suddenly leave since Bitcoin's difficulty will automatically adjust such that blocks are still generated every 10 minutes, so the network can absolutely handle losing half the hashpower (sure, if they all disappear at the same time, it'll be a pretty ugly two weeks before the fix, but that edge case is not really worth discussing). Can anybody point out any flaws with this reasoning?
Is Bitcoin's electricity needs a long-term headwind for scaling? What options are there?
Huge bull on Bitcoin/crypto but I honestly don't have a great answer for this. Visa levels of usage/transactions = enormous electricity needs. Anyone have thoughts on how to reduce the electricity needed per transaction while preserving security?
Why wouldn't bitcoins electricity use taper down or plateau as the block reward subsidy decreases and transactions move offchain? Even with a rising price of btc it is concievable that the total block reward to miners declines and thus they shutdown their less efficient mining gear.
It seems like difficulty could adjust downward without threatening security of the network as long as it doesn't go down so far that someone could turn on enough old miners all at once and 51% attack for 2 weeks until the difficulty adjusts up again
The electricity that is expended in the process of mining Bitcoin has become a topic of heavy debate over the past few years. It is a process that makes Bitcoin extremely energy-hungry by design, as the currency requires a huge amount of hash calculations for its ultimate goal of processing financial transactions without intermediaries (peer-to-peer). The Cambridge Bitcoin Electricity Consumption Index (CBECI) provides a real-time estimate of the total electricity consumption of the Bitcoin network. The CBECI is maintained by the Cambridge Centre for Alternative Finance (CCAF) at Judge Business School, University of Cambridge. Bitcoin, the largest virtual currency, is a particularly voracious consumer of resources because new Bitcoins are distributed in a kind of lottery where each ticket is purchased with electricity ... Electricity consumed by bitcoin network depends on two factors: network hashrate and mining equipment efficiency. Electric power is measured in watts (W), electricity consumption – watt-hours (Wh), hashrate – trillions hashes per second (TH/s), mining efficiency – watts per trillion hashes per second (W/TH/s). Mining equipment efficiency is constantly improving, consequently, with time ... The Bitcoin Energy Consumption Index provides the latest estimate of the total energy consumption of the Bitcoin network. NEW: Study reveals Bitcoin’s electricity consumption is underestimated and finds the network “represents close to half of the current global data centre electricity use” (August 2020).
Every few months, some new report comes out stating that Bitcoin uses the same amount of electricity as an entire country. Criticizing Bitcoin on such grounds is absurd. ##### BITBLOCKBOOM ... What’s the physical cost of a digital currency? The amount of energy that Bitcoin mining consumes is about the same amount as some medium-sized countries – and that will only increase. Take a ... Bitcoin mining 'is using so much energy that it is causing electricity blackouts' amid fears it will consume more power than the world by 2020.The virtual mining of Bitcoins is using up so much ... What’s the physical cost of a digital currency? The amount of energy that Bitcoin mining consumes is about the same amount as some medium-sized countries – a... Shaun Richards from Not A Yes Man Economics discusses the correlation between bitcoin and electricity. In the news today there were discussions on electric cars and their popularity, ^ that by ...