Imagine being tasked to find a specific grain of sand from 10,000 square km of desert. Imagine how complex and resource-intensive this task can be. You would probably deploy high-tech heavy machinery to dig in the sand and scan every single grain. Imagine how much energy this process would require.
A stupid amount of it.
That's exactly what it takes to add a new transaction to the Bitcoin blockchain.
I will never get tired of writing about this. It seems so stupid to me that the Bitcoin mining industry consumes more energy than entire countries. What are the benefits?
This video from the Financial Times shows the total energy consumption for several countries, over the past 3 years. Look at what happens to China's after the ban on crypto mining in 2021!
Plus, much of the energy used for Bitcoin comes from fossil fuel, as it needs to be as cheap as possible to make the process profitable for miners. This makes Bitcoin tied to real economy cycles.
If price of electricity goes up, Bitcoin becomes more expensive to produce, less profitable and less attractive. Hence its price will go down.
Wasn't it supposed to be an edge against inflation? Of course not. In 2022, it's madness we're still wasting energy and time with this.
Is Bitcoin the future of money? To me it's already the past!