Bitcoin consumes as much power as Luxembourg, Chile, Austria and/or Norway. The assessments are varied as they are alarming: Consume, we actually have so much energy, only a digital currency secure and to earn for us, in the best case, a Golden nose? If Yes, what can we do about it? A look at Bitcoin and its energy problem.
Bitcoin has an energy problem, depending on the estimates and methods of measurement of the digital currency consumed as much energy as Luxembourg, Austria and/or Norway. One thing is undeniable: It is spent a lot of energy to prove that transactions take place – the Proof-of-Work algorithm is not eco-friendly. But who is it? Let’s take a look at the example of Bibi Blockchain.
The Story of Bibi Blockchain, the exemplary Berliner
Bibi Blockchain eats two Times a week meat. From time to time, she eats a little sausage and when she has time, cooks you an egg. Since she grew up with traditional values, she eats every Friday fish.
It’s All Organic!
But it’s all ORGANIC! This is slightly expensive, but Bibi Blockchain was Early Adopterin and was alongside Satoshi Nakamoto the first Bitcoin miners, which is why she has the last all-time high with a Golden nose earn.
Also, you pay attention, especially when asparagus and strawberries – to buy your products seasonally. Since, however, she is a busy woman, this is what happens not too often – she plays guitar in a Heavy Metal Band. So it is also that she has at home (in your humble 20-sqm-room in a shared flat) with a small amplifier. Once a year you deserve also air travel, especially to Norway, and departs two Times a year by train from Berlin to Bavaria, to visit her parents.
Actually, it feels quite normal. Especially since you always pay attention to organic and not-too-often eat meat, not to be particularly harmful to the environment. Then she goes online and makes a Test, to keep your ecological footprint test. The result is you will be shocked tremendously, he is at 3.9 gha (global hectares):
“This is Your result! Are You surprised? If all citizen of the earth, Your footprint would have, we would need 2.3 planet.“
Desperate Bibi clicks through the statistics and finds out: she is not alone. In Germany the average is rich of 5.0 global hectares, the entire world has an ecological footprint of 2.8 global hectares. And what would be sustainable? Of 1.7 global hectares.
Ouch, thinks Bibi and think of your best friend, Benjamin, Bitcoin, is even deeper in the misery.
Bitcoin and the energy consumption
Currently, a study is making the rounds, stating that Bitcoin could alone ensure that the global warming increases to 2 degrees Celsius – a worrying number. The current estimates of Digiconomist to quantify the current energy consumption on annual 73,12 TWh – about as much as Austria. According to these data 0.33 percent of the world’s energy takes Bitcoin consumption on its decentralized shoulders.
The common reasoning in the Bitcoin Community, these things mainly in two directions: Silence or a nice talk. It is often said then, “Yes, but Visa also consumes a lot of energy,” or “look at all Fiat currencies together consume”. Or the studies are accused of, as it is currently happening in the crypto-media-landscape, a lack of Accuracy:”Since it was not calculated correctly”, is it then about.
However, all these arguments do nothing to change the Problem: Bitcoin, crypto-currencies and all the world’s energy is consumed. And clearly too much of it.
How to solve the energy problem of Bitcoin?
There are already approaches that are followed in the Community lively. Finally, the environmentally disinterested Bitcoin-Miner does not want to unnecessarily consume power. Only because it costs money.
What comes first to mind, are Second-Layer solutions, such as the Lightning Network. Transactions are not executed directly on the Blockchain itself, but outsourced, leading to a significant energy is saved.
Another approach is a current example from the US-American small town of Plattsburgh. The city was flooded due to the favorable current with Bitcoin-miners. Because of this, however, only in limited quantities, the Bitcoin-Miner, the local residents soon became a thorn in the eye.
This ultimately led to the city uttered against the unpopular guests for a Moratorium: Miner have to stay outside. But, as it happened in the history of mankind is often a virtue out of necessity. It was a 19-Year-old, in fact, an important step to solve the Mining Problem of Plattsburgh.
Ryan Brieza and the solution of Plattsburgh
In Plattsburgh, it is so – once again – a very young head, in the ideas, in order to improve the Ecosystem a bit. Ryan Brieza is currently working at modular Mining devices, which are able to heat to recycle. The prototype is to be made of wood, the final product of the young inventor of metal tinkering. The Ingenious thing about it: The whole collected energy is delivered to a single location that can be caught and recycled.
Such things are, not (only) the crypto-Community. How can you use energy wisely, to consume without you””? And as energy cannot be produced, so that it pushes the planet so much on the mind? Whether Bitcoin or not, The earth has be a global energy problem, to solve it.
And here you can even Conciliatory to the perplexing situation see: Maybe it creates some of the issues surrounding Bitcoin – from-Plattsburgh-to-see – a debate that, it is also economically attractive, resource-efficient to work. Because you can make of it what you want – money, ultimately, is the (not exactly eco-friendly) the engine of most companies.
Blockchain and renewable energy
We remind us of an important technological innovation that has entered the Bitcoin in the world: The Blockchain technology. And we remind ourselves of its advantages: it is decentralised, transparent and can reduce the efficiency of many of the costs (and thus energy).
Especially in the energy trade, there are already existing solution approaches. Currently the power market is centralised, still quite – large Player to take the business, while the smaller players difficult to enforce. Due to the fact that it produces electricity in Central power plants, are the distances from the power station to the consumers sometimes take too long and consume so that itself to a lot of energy.
The Blockchain technology can make a contribution here through a decentralized distribution, these ratios will change dramatically, and electricity in a better, more effective and faster from production to the consumers. Thus, Intermediaries on all levels of way – all power-hungry, which can save the Blockchain technology.
These findings can ultimately affect all areas of the organization require and thus consume energy: the public management of the financial system to electric mobility. All of the cost by using the distributed technology and energy savings. A Problem that we must solve whether it’s through Bitcoin, Blockchain, or other–.
Conclusion: There is much to do
Back to Bitcoin, which is our problem child. It is not to deny that Bitcoin (consumed too much) energy. But it is just to deny a little, that there are solution approaches. And that is perhaps even more important: Together with the Blockchain technology, it initiates global changes that can come the planet-to hope even in energy issues – in the end (so it remains).
However, awareness needs to be created and the technological Revolution, for the Bitcoin is that needs to be addressed. Of all of them.