One BIG Problem with BitCoin and Mining them – Energy requirements


Hi there.

Here at Green ISP we have been making folk aware of the innovative and de-centralizing elements of money transactions and the “BlockChan” via Bitcoin and other Crypto currencies such as Etherium etc…

One BIG Issue that is starting to become mainstream in the wake of the popularity of bitcoin (especially for speculation purposes) is the vast amount of Energy required to complete a single transaction and the massive energy requirements to mine a coin, or part of a coin.

We locate some of our Hosting services in a datacentre in Icelend as it is 100% renewable and to take advantage of free cooling, however when it comes to others using iceland to mine Bitcoin it’s a different story?  “This year, electricity use at Bitcoin mining data centres is likely to exceed that of all Iceland’s homes”, according to Johann Snorri Sigurbergsson, spokesman for Icelandic energy firm HS Orka.

The crypto-currency mining industry in Iceland was recently given a boost thanks to the launch of The Moonlite Project – a large data centre where various crypto-currencies, including Bitcoin, will be mined.

It is set to open later this year and will have an initial capacity of 15 megawatts, though this is expected to increase in the future.

It’s certain that the increasing energy burden of bitcoin transactions will divert progress from electrifying the world and reducing global carbon emissions. In fact, I’d guess it probably already has. The only question at this point is: by how much?

I believe that the rise in popularity of Bitcoin as a way of making money without taking into account the environmental impact could be a risky path, especially if we loose sight of what the Blockchain can offer with Bitcoin bolted on as a tool rather than a speculative means to no end?

Sounds very familiar to me (current monetary system out of whack with an resources based economics)…

Food for thought?

Sources: grist.org and bbc.co.uk

 

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