Bitcoin Is the Size of an Entire Country


Welcome, welcome to One Minute Crypto! I'm your host, Chronos, and today we're going to talk about something that most people don't usually think about: how much electricity bitcoin mining uses around the entire world Every now and then, you see a news article about it, but it mostly flies under the radar

So in this video, we're going to look at some estimates, talk about why this is a big deal, and then maybe a reason that it's nothing to worry about But first, I want to let you know that this episode is proudly sponsored by KeepKey, a USB device that plugs into your computer to keep your cryptocurrency safe This little guy stores your private keys directly on it, so even if your computer gets a virus, your money is still secure Check them out at KeepKeycom

So, one of the the biggest reasons to be concerned about the electricity usage of bitcoin mining is the sheer size of the numbers There's a great website called Digiconomist that puts out some estimates on this, so I've put a link in the video description At the time of this recording, in early 2018, they estimate the bitcoin network to consume about 38 terawatt hours of electricity per year, which puts it at about the level of the entire country of New Zealand or Peru If bitcoin were its own country, it would be 57th in the list of top electricity consumers Wow

Probably not great for the environment Not only that, but the energy usage chart is pretty much moving in just one direction: up So why is this? Well, the bitcoin network is designed to create a certain amount of new bitcoins for every block that's mined on the blockchain So when the value of bitcoin rises, which it's been doing for a while now, that basically incentivizes this entire crazy system to get bigger and bigger Another interesting way to look at this whole problem is: how much electricity is burned in bitcoin mining, per transaction processed on the network? When we do the math, we get an estimate of 330 kilowatt hours per transaction, which is about the same as leaving a bright 100-watt lightbulb on, all day and night, for over four months, and that's for ONE TRANSACTION

It definitely seems excessive to me, especially since there are alternative blockchain security models, like Proof of Stake, that don't depend on this kind of consumption But let's balance this out with another perspective Bitcoin is securely processing worldwide, irreversible payments If we wanted to do this with another technology, we would use, well, BANKS! Think about all the "energy" that banks use The cost of just running the bank branches, which would include the real estate, the employee time, the electricity for heating all those buildings, that really adds up, too

I understand that banks handle a lot more than just global payments, but between the two systems, it seems to me that bitcoin could still the smaller leach on society, if you know what I mean But what do you think about all this? Is bitcoin hugely wasteful, or it is completely reasonable, considering what it offers to the community? Let us know in the comments below, and don't forget to subscribe Thanks for watching!

About the Author Dancake

Hey hey hey. It’s Ville and welcome to my blog. I am a tech enthusiast and always looking for ways to generate new income streams. At the moment Bitcoin cloud mining is one of the most promising ones and that’s why I created this website. Hope you like your stay. If you want a quick start guide about making passive income with cloud mining check out this guide.