The Debate on Bitcoin’s Energy Consumption Continues
Twitter CEO Jack Dorsey, along with Cathie Wood’s Ark Invest, are working towards using Bitcoin mining to “accelerate the global energy transition to renewables.” According to CoinShares, an estimated 74% of the energy used in bitcoin mining actually comes from renewable sources.
While people argue that given the majority of Bitcoin’s hashing power comes from China, that it energy consumption is based on coal, but that's not true because most of the Chinese miners depend on hydroelectric power; which is the cheapest power source.
Inner Mongolia, the second-largest coal producer, has shut down crypto mining, which could further push miners towards using renewable sources.
As a step towards making the world greener, the CEO of crypto exchange FTX announced the donation of $1 million to offset the blockchain resources it uses. Another exchange, BitMEX, has joined FTX in its green efforts.
Together we can make the world a better place, and it doesn't mean we have to give up what we believe in.
FTX is going carbon neutral, donating $1m to offset the blockchain resources it uses.
So we can make the world greener. And so we can keep pushing crypto forward. https://t.co/Uqz8DqUNGJ
— SBF (@SBF_Alameda) May 20, 2021
Amidst the energy consumption discussion, Sam Korus, an analyst at Ark Invest, posted an update to ARK's open-source solar, battery, and Bitcoin mining model, which now allows one to test how the system would have performed in historic Bitcoin bull and bear markets.
“The takeaway is that regardless of a Bitcoin bull or bear market, Bitcoin mining can incentivize additional solar and battery installations,” he said. “The next step is to dimension solar+battery+Bitcoin mining at the household level.”
Elon Musk also chimed in here.
As Brett Winton, Director of Research at Ark Invest, talked about Bitcoin mining being able to allow solar and battery systems to economically scale to provide a larger share of grid energy, Musk took part in this conversation by agreeing that “this can be done over time.”
However, “recent extreme energy usage growth could not possibly have been done so fast with renewables,” he added.
Musk then goes on to say how Bitcoin’s energy usage has started to exceed that of medium-sized countries, making it “almost impossible for small hashers to succeed without those massive economies of scale.”
As Bitcoiners have been pointing out, Bitcoins' energy usage is what makes the network so secure and decentralized.
“Achieving truly decentralized finance – power to the people – is a noble & important goal. Layer count depends on projected bandwidth & compute, both rising rapidly, which means single layer network can carry all human transactions in future IMO,” said Musk. “For now, Lightning is needed.”
In a separate tweet, he continued to share his love for Dogecoin as he demonstrated a Doge dollar sticker that a Tesla supporter gave him in Berlin.
Musk further revealed that he actually owns DOGE, the sixth-largest cryptocurrency by the market of $50.3 billion, trading at $0.3574, and that he has no plans to sell any. DOGE -5.96% Dogecoin / USD DOGEUSD $ 0.21
-$0.01-5.96% Volume 1.79 b Change -$0.01 Open $0.21 Circulating 131.42 b Market Cap 27.29 b 1 d Google Searches for Bitcoin Hit Dec 2020 Level, Interest in NFTs Surpass DeFi Significantly and Matched Ethereum Briefly 1 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 2 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End
“I haven’t & won’t sell any Doge,” said Musk.