Newbie Question : GPU processing cycles, electricity resource

[gaoxing]

I am new to BitCoin and I have one question.

It seems that BitCoin miners are using alot of computer processing power
and electricity to get these BitCoins...but is anything utilised from all these
expense?

I know it is processing hashes or something like that...but isn't this a bit of
a waste?  I mean there are alot of Global Grid Commuting initiatives...couldn't
all this GPU cycles and power spent running these machines be put to better
use?

The amount of GPC cycles could still be monitored but the computing power
could be allocated to one of these causes?

Perhaps there is some other function that goes on...but it seems like a bit
of a waste of not only GPU but also the energy to power these machines.
so perhaps we could make BitCoin more ecological

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[NetTecture]

I am new to BitCoin and I have one question.

It seems that BitCoin miners are using alot of computer processing power
and electricity to get these BitCoins...but is anything utilised from all these
expense?

I know it is processing hashes or something like that...but isn't this a bit of
a waste?  I mean there are alot of Global Grid Commuting initiatives...couldn't
all this GPU cycles and power spent running these machines be put to better
use?

The amount of GPC cycles could still be monitored but the computing power
could be allocated to one of these causes?

Perhaps there is some other function that goes on...but it seems like a bit
of a waste of not only GPU but also the energy to power these machines.
so perhaps we could make BitCoin more ecological

It is a trivial amount of electricity compared to some other uses.

[Rob P.]

Short answer?  No.

The computations are part of the algorithm to generate the Bitcoins themselves.  The work is expended to produce something that intrinsically has value, a Bitcoin.  Those cycles aren't being wasted, they're being utilized on Bitcoin creation.  

A monetary system cannot create value.  If I just printed money, no one would take it, because it has no intrinsic value.
If I generate a Bitcoin, I expend value, so the Bitcoin I produce has some value.

When the US Government prints dollars, they don't just hand them out (though sometimes it feels that way).  They actually PURCHASE things with those newly printed dollars, thus imparting value to them.  Otherwise, they would rapidly devalue the dollar (if they just sent everyone $200 everytime they printed up a billion dollars).

So, while it may seem the cycles could be used on something more altruistic.  In fact, that's the trade off you make if you decide to mine.

All that equipment being used to mine gold isn't going to waste to mine the gold.  Though it could be used to build new homes for the homeless.

[gaoxing]

OK thanks for answer....

I understand the machinations of the Federal Reserve and it's Quantitative Easing programs
and other Central Bank's printing money and the dynamics of Money Supply only too well.

It seems however that the algorythm could be linked to Global Grid Computing initiatives
that would supply raw computational power to worthy causes while still generating the
BitCoins.

A win-win situation one would think.  Make money and help solve some of humanities problems.

[kr105]

Simple answer: No, the network need the hashing power to work, just read some threads about this same question and you'll fully understand this concept

PS: This should be in the FAQ. I have about one month in the bitcoin forum and I've seen this question at least 3 times.

[gaoxing]

oh so the processing power is used to keep the network alive?

As I understand it, the bitcoins are hidden in hashes, which the GPUs decypher.

If you could point to where I could read up on this to better understand this I would appreciate it.

I see GPU mining compared to Gold mining...so in a way it is like expertise in building Gaming Machines
is developing value like Mining skills are valued in Australia.

Right now a bitcoin is saying "I made my computer decypher x.xx TB of hashes" that is why I have
value...with Gold you got a rare element and silver something that is used to make catalitic convertors.
Paper Currencies of course are just debt issued by governments that are broke but have militaries,
police and other centralised authorities ie. power which they will cling to with iron-fists even if they
are broke.  The bitcoin is also backed up by the power of the crypto community.

Thinking out aloud here a bit.