Bitcoin Climate Dilemma: Mining Bitcoin Consumes an Entire Country Worth of Electricity | Watts Up With That? Yes, ‘bitcoin mining’ is energy expensive. And utterly useless. Its basic design is to consume more and more computer energy in order to ‘create’ this ultimate fake money. It takes real resources of the planet to made basically a number/code system! This is the earthly equivalent of a black hole infinity nexus. It is a destroyer of life. Money has always been a dark place. Original money came out of the earth, was dug up and then made very hot and then turned into ‘coins’. The Dark Arts surround ‘money’ in all its incarnations with this latest one being all about crimes and the recent sudden rise in ‘bitcoin’ value is fueled by the Chinese mainly who have a very short history with ‘money’ of less than 30 years.
Readers don’t believe me when I talk about how money is connected to Hades, it is a Death Entity that tends towards either nothingness or impossible wealth. It destroys the rich and the poor alike in a desperate cycle of creation and destruction that seems unescapable. Reading any coherent account about ‘money’ and ‘wealth’ and we see clearly there are cycles that happen over and over again.
The trick for keeping from this being a destructive cycle is…RESTRAINT. That is, you don’t do stupid things. But humans want infinite wealth with the least labor so they tend towards scams. Or worse, they value something rare like gold or silver and then kill anyone who hoards these and steal it over and over again. As I have pointed out before, one of my ancestors was a French Huguenot pirate who sailed the Spanish Main and stole doubloons.
LET ME FREAK you out for a second. You know what bitcoinis, right? I mean, no, but quickly, it’s a “cryptocurrency” that’s basically secret computer money. One bitcoin, which doesn’t actually have a real, physical form, is worth at this moment upwards of $16,000. But to get one, you either have to buy them from online exchanges or use specialized computing hardware to “mine” it. That last bit is where the freak-out comes in.
The people profiting from this in the long run are the people making these specialized computer systems. After this crashes (when going to infinity, all things collapse) these computer experts will still be computer experts and will do other computer stuff. The people buying these computers will be destroyed and have zero economic value when it crashes.
In a report last week, the cryptocurrency website Digiconomics said that worldwide bitcoin mining was using more electricity than Serbia. The country. Writing for Grist, Eric Holthaus calculated that by July 2019, the Bitcoin peer-to-peer network—remember BitTorrent? Like that—would require more electricity than all of the United States. And by November of 2020, it’d use more electricity than the entire world does today.
All infinity systems try to run to infinity. The bitcoin scam was, ‘it is limited and won’t go to infinity’ and I pointed out that this wasn’t true, if it is limited in number, it will become overvalued in the extreme and when that happens, all the holders will simultaneously sell off this fake ‘money’ and it will find few buyers.
That’s bad. It means Bitcoin emits the equivalent of 17.7 million tons of carbon dioxide every year, a big middle finger to Earth’s climate and anyone who enjoys things like coastlines, forests, and not dying of mosquito-borne diseases. Refracted through a different metaphor, the Bitcoin P2P network is essentially a distributed superintelligence utterly dedicated to generating bitcoins, so of course it wants to convert all the energy (and therefore matter) in the universe into bitcoin. That is literally its job. And if it has to recruit greedy nerds by paying them phantom value, well, OK. Unleash the hypnocurrency!
The reason all systems go to infinity when there is no physical barriers is obvious to me: humans are greedy monkeys. We really hate limitations and would dearly love to have infinite whatever. All sorts of stories tell the downside of this natural greed. It always ends badly. King Midas turning his child into gold is one ancient and famous example.
To put it another way, given that most of the cost of mining bitcoin is the cost of the electricity you have to burn to solve the proof of work problem, the thousands of dollars you have to pay to buy a single bitcoin is the electricity bill you would have to pay if you mined that bitcoin yourself.
The delicious irony is, the people who created and promoted and popularised this pointless carbon belching monstrosity are mostly also the people driving California’s green agenda.
Actually, bitcoins are a grand scam and is attracting every sort of flim flam person on earth. It is great fun, making money out of basically computer time. The persons doing this just sit back and wait for the computers to create ‘money’. They do have to use common currency to pay of the energy to do this. People cheating each other are irresistible.
Everyone thinks they are the smart guys doing the scam. But the smart guys often go down with the ship, too. The only value of bitcoins is two: when doing criminal stuff and you don’t want your money tracked or…hoarding these so one can rejoice in how valuable it is even though it has to be processed into government money to do anything slightly useful.
A very unstable ‘money’ is impossible to use in business. Stability matters! If a ‘money’ changes value every hour, it is useless as a currency because no one knows what its true value is…money ceases to operate safely if it changes value every hour or every minute. It is impossible. Hoarding this fake money on the other hand, is very easy and this is why it rises in value. Cease hoarding and it drops in value.
There was an article elsewhere that said 31 Terawatt-hours had been consumed last year mining bitcoins. I did a calculation, and based on the number of bitcoins mined at the time of calculation, the electricity cost alone, at $0.15/kW-hr, was about $6,200 per coin. Not counting the cost of the equipment to do the mining. For most of 2017 the value of a bitcoin was around $1,000 to $2,000. It wasn’t until November 10 that you would have broken even for all the bitcoins mined until then.
There is some dispute about cost of creating this fake money. It rises as time passes which is yet another facet of all infinity machines that fail. Below are comments from some of the readers of the above article:
The blockchain (Bitcoin is one implementation) is an accounting system that can be trusted as much as anything can be trusted. Bitcoin itself is a payment system, like money orders, Pay Pal, Western Union, etc., that uses a blockchain to account for all payments made using bitcoin..
It is also highly unstable due to speculators and thus, useless for business.
The Bitcoin blockchain works by mining blocks each of which can account for a number of payment transactions (currently around a thousand). A single block earns its miner 12.5 bitcoins , and voluntary transaction fees for each transaction recorded within that block. Once 21 million bitcoins have been issued, miners will have to rely solely upon transaction fees for profit.
It appears to me that once the ceiling for creating this fake money is reached, it will then cause all other aspects to explode as users try to use these as ‘money’ to buy stuff from a very suspicious public. Any big drop in value leads to collapse.
If bitcoins are not used as a payment system, then bitcoin loses all its value. A bitcoin cannot be spent outside its blockchain and the blockchain needs new blocks mined to record those transactions. If there are no transactions to record, then there is no value in mining new blocks so miners will stop mining. Bitcoin will be stranded like a whale on the beach.
I agree with this analysis.
We still live in the hard currency universe thankfully. Making actual purchases with bitcoin is currently very difficult to impossible. In all of Manhattan, that WSJ reporter was only able to find 1 ice-cream shop which sold him a cheap $4 ice cream sandwich for ~$7 value in bitcoin (at the time he made the video). The pizza place was a Dominos Pizza, but they do not directly take Bitcoin. It went through a middle man exchange that took a transaction fee before sending the hard dollars to the pizza store before the pizza store would make-transfer the pizza. Very inefficient. And in all of Manhattan, only two places to buy something. Bitcoin is worse than tulips. At least you can barter a tulip as it is a tangible thing.
So in the real universe, that’s inflation if I have to put in $78 in greenbacks into a Bitcoin ATM to buy an otherwise $10 if I just paid with dollars.
Isn’t this sad? You are charged much more than the supposed value of the bitcoin. Charging a 100% markup is a !00% markup, not a ‘bargain’ which is why, when these things reach their ceiling, the ceiling will fall on them all.