Bitcoin Energy Consumption
easy to measure easy to criticize
Bitcoin Fear Uncertainty and Doubt (FUD)
I am sure you have read one of those articles declaring Bitcoin energy consumption will singlehandedly destroy the earth. Now I am all for responsible use of energy, but really. Bitcoin energy consumption is easy to measure because of Bitcoins transparency but if Bitcoin’s energy consumption is excessive, in comparison to what?
What are the current modes that we use for payment today for transacting business what is the energy consumption of the Wall Street Banks, Visa, Amex, PayPal?
It doesn’t take a rocket scientist to understand that the energy consumed by all the people that commute to Wall Street to run those computers and electric lights and elevators all day long 5 days a week to run all the trading machines. How much energy is consumed there and not just Wall Street but all around the globe?
We won’t really know if Bitcoin or blockchains are a viable alternative to the current system if we know what energy consumption of the current system is.
ARE YOU SUGGESTING THAT BITCOIN COULD REPLACE ALL THOSE BANKS AND PAYMENT SYSTEMS?
No, (don’t get so excited now). I am suggesting that articles based on FUD are missing the point about cryptocurrency. Fear is not a good basis for sound decision making. Uncertainty causes doubt and clouds judgment.
The future will be different, guaranteed.
There’s no question in my mind that streaming money programmable money blockchain money will be far more efficient than the current means we use today shipping coins and paper big armored trucks sending contracts and invoices that have to get delivered in postal trucks.
Even standard accounting all very labor-intensive processes very costly process. When money is streaming the nature of accounting changes it’s no longer a snapshot at a point in time but rather continuous monitoring process, bye-bye GAP helo what? A few enlightened firms are looking at that future, it is coming.
We have today to capability to do sub-second trades we certainly have the capability to do continuous flow currency monitoring instead of snapshot auditing. The problem is not technical is about trust. There is only one way trust happens, by trusting. That leap of faith does not come with guarantees, it builds trust over time, but it needs a chance to grow.
Baby and the bathwater
Before we pass up a good opportunity to improve the life of billions let’s give it more time. How long did it take for phones to catch on? Decades! There is a quote attributed to Henry Ford “If I had asked people what they wanted, they would have said faster horses.” Innovation needs breathing room, and the history of money proves, it is either going to be something or die on the vine.