Breaking down the 7 myths of Bitcoin #5
Bitcoin wastes energy
A part of the society raises the red flag on the amount of energy consumed by the Bitcoin network.
This concern stems from the idea that the energy consumed by the Bitcoin network could be used in other ways for more productive functions, or that it is simply bad for the environment. Both ignore that, in the long term, there may not be a greater and more important use of energy than that which is deployed to ensure the integrity of a money network, in this case, the Bitcoin network.
How could so much energy be justified, and what will Bitcoin consume when a billion people are using it?
The dollar works very well, doesn’t it? Well, that’s the thing, it doesn’t.
These resources are being devoted to solving a problem that most people don’t understand exists, which makes justifying a derived cost a challenge.
To help ease the pain of environmentalists and social justice warriors, we often point to a series of compensatory narratives to make it seem more acceptable:
A significant proportion of Bitcoin’s energy consumption is generated from renewable resources.
Bitcoin will stimulate innovation in the development of renewable energy technology and resources.
Bitcoin consumes only as much energy as the free market will support at a free market rate.
Bitcoin consumes energy resources that would otherwise be uneconomic to develop.
Bitcoin’s increased energy consumption means that more people are demanding it, because they expect this value system to give them what others don’t.
Bitcoin is a consumption that is well invested.
Breaking down the other myths:
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