https://i.imgur.com/HSxUCGI.jpgThe invention of Bitcoin marks a pivotal moment in the history of finance. Through its decentralized issuing mechanism, mining, Bitcoin was able to return financial freedom to users, ensuring that no transaction can be censored or reversed by third parties.
Moreover, Bitcoin has put currency issuing itself in the hands of the people, rather than in a centralized entity. This has allowed Bitcoin to thrive as a global, apollitical currency and store of value, impervious to outside factors that would otherwise undermine its value and efficiency.
Mining isn’t all good, though
However, as it is common with technology, when one problem is solved, another one arises from the solution. This is the case with Bitcoin mining, a once harmless practice that could be performed from any regular desktop computer. Today it’s a billion dollar industry with an estimated consumption of 288 megawatts, according to data from the Global Cryptocurrency Benchmarking Study by the Cambridge Judge Business School.
Renewable energy
In 2016, BBC revealed that 70% of the Bitcoin hashrate was located in China. Unfortunately, the vast majority of electricity in the country is produced by burning coal, resulting in one of the biggest carbon footprints in the world. Despite recent efforts by the Chinese government to halt coal power projects, the “dirty black rock” is still being burned throughout the country. From industrial boilers to home stoves, coal generates more than 75% of the nation’s electricity.
It has become clear that as long as mining remains profitable, more mining computers will come online, consuming even more power. The long-term solution may lie not with alternative mining/issuing methods but with the source of electricity itself.
