Despite reading a lot about it, I still don't really grasp how this can work. It's supposed advantage is its independence of central banks but without some sort of underpin I don't see why I could have any confidence in its stabiity. And now that there are over 10,000 cryptocurrencies, how would anyone know which will endure?
For now its main function seems to be as an investment. Actually not even that, more of a speculative asset.
Bitcoin now accounts for maybe 1% of all electricity used. Allegedly every transaction uses around 2,000kWh of power. A single bitcoin costs tens of thousands of dollars to mine even using the cheapest electricity. It's mind-bogglingly inefficient. Some miners use renewable electricity, many mine using low cost power derived from dirty generation. It's insanity when the world should be trying to control demand and switch to renewables.
At least our super-expensive power should ensure that we don't end up with a mine on our doorstep in the UK.
www.washingtonpost.com/business/2022/03/18/bitcoin-mining-noise-pollution-appalachia/
Other than greed, why would anybody want anything to do with it?
N. Ludd.
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