Friday, June 9, 2023

Bitcoin: Four Environmental Myths


Bitcoin’s price has reached another all-time high, having reached $50,000, or approximately £36,095. Ten years ago, roughly 10,000 bitcoins could only buy a couple of pizzas. Another mind-blowing situation was seeing bitcoin rapidly change into being completely virtual. There will be no underlying assets, but you can acquire one physically, only on hard drives. Proof-of-work is another term for a simple digital representation that allows it to be made one with the use of computer power.

This idea is not new. One of the first people able to create money used on the Micronesian islands of Yap identify as Rai Stones. For you to obtain Rai, you had to continuously row a canoe for roughly 500 km, heading to Palau and Chisel and going away to some local limestone. On top of that, you also need to take 3 m-wide lumps of rock to get back to Yap without drowning in the Pacific. The records of how it began are unknown, but given that the practice knows to have existed for several centuries, it is also unknown when it began. This type of money, called Yapese, doesn’t have a pre-existing characteristic attribute indicating its worth. Just like with bitcoin, the method disorganizes and is incredibly resource-intensive for anyone to respect or appreciate the proof-of-work.

Bitcoin uses a worldwide network of competing computers

Instead of relying on intrepid voyagers, Bitcoin uses a worldwide network of competing computers. This method compares to using a safecracker at a safe-cracking contest. In this way, bitcoin mining machines will be the ones who guess the combination to use in a digital lock—a long string of digits. This correct combination will have the chance to win a few new bitcoins. However, these combinations rapidly change, roughly every ten minutes, for the contest to keep going on.

People might see it as an environmental game of digital bingo, but having high rewards attracts numerous people to join. Records have shown that bitcoin mining on some days consumes energy as much as Poland and generates 37 million tons of CO2 each year.

New institutional investors, such as automaker Tesla, are rapidly increasing the value of their assets while ignoring Bitcoin’s effect on climate change. For them to keep the bull market going, supporters are working hard to advocate for Bitcoin’s sustainability.

This kind of myth needs to go public for the stability of the climate.

1. Bitcoin mining Efficiency is Improving

The Bitcoin Network’s dirty secret about its bitcoin carbon emission was on top, but it doesn’t end there. In 2011, miners who are competing can win bitcoin bingo that is equal to a laptop. ASIC or Application Specific Integrated Circuits, a warehouse fills with important hardware. Bitcoin miners make sure to go for the cheapest unit as the majority of mining costs are using the energy to run the units. To avoid the extensive waste of energy, the global arms race for Bitcoin replacement on ASICs is with newer and more efficient models every year.

ASIC complicates general computing. Every year, redundant units create roughly 11,500 tons of hazardous electronic waste every year that dumps mostly on cities in the global south.

2. Bitcoin Advocates Green Power Funding.

Hydroelectric power plants powered by Chinese investors are one of the most popular destination choices for Bitcoin mining. While China is taking harsh measures against the industry, 61% of Bitcoin mining consumes fossil fuels.

In Australia, cheap coal found and has been attracting new consumers through bitcoin since, in early times, coal mines began where they left off in power mining. In search of residual energy and increment when it comes to the profitability of natural gas in Siberia and oil drilling located in Texas, miners allocate anywhere in the world.

Miners have unique access to low-cost, clean energy generated by an EU-funded hydroelectric plant. This plant creates to help its citizens find a means of livelihood instead of poaching. It designs to stop its locals from scouring the parkland for wood fuel. Bitcoin miners seek the help of experts on computer servers instead of ex-combatants that factories can help.

3. Bitcoin Eliminates Gold Mining.

This kind of mining is an out-of-order myth present in industries in the market. Bitcoin was originally conceived as a digital replacement for gold, and it is also a deflationary medium of exchange that can make wasteful banks and regulators unnecessary.

But in the view of many institutional investors, gold treated as having an exception against bitcoin’s rapid change. Over the US $1.5 billion was poured into Tesla’s bitcoin on top of declaring its interest in gold. Gold also reached one of its all-time highs in 2020, while bitcoin is at an all-time high.

4. Player Promotes “Green Bitcoin” Demand.

Turning bitcoin green is one of the top arguments by institutional investors. The founder of Swiss cryptocurrency thinks tank 2B4CH, Yves Bennaim, says that if investors like Tesla drive the price higher, more incentives will be present, driving higher investments in renewable sources of energy. In contrast, miners will always go with the cheapest option for them to have their returns. It is impossible to track which bitcoin miners use renewables. That is why allocating additional awards to miners using renewable sources complicates.

By all means, having a green bitcoin is currently impossible to prove.

Existing cryptocurrencies are not all energy-intensive like bitcoin. There are still alternatives to proof-of-work. Ethereum, the second-largest blockchain system, is diverting into proof-of-stake. It is a new system that will eliminate the need for data miners and perpetual hardware updates. Its name is naturally dirty, but announcing it to would-be investors will not affect its name.

Rainy Naidoo
Rainy Naidoo
Rainy Naidoo is a writer for Cryptoconstellation. She has her Degree in Journalism and communications. Rainy Likes to spend her free time reading and exploring new places.

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