Bitcoin is good for the environment
A single Bitcoin block uses enough energy to power your house for a week! Bitcoin’s energy usage is comparable to that of Nigeria! If the energy usage continues to grow at the same rate, Bitcoin will use ALL OF THE ENERGY.
I’ve heard it all, and I’m going to list some reasons why a fully adopted Bitcoin economy would actually reduce global energy usage and improve the environment.
Before we get started on what I think, it’s important to look at a breakdown of the math that sensationalists use to show that Bitcoin is bad for the environment (spoiler, it uses less than 1% of the energy that idle electronic devices in just the US consume, and this energy is being spent to protect ~$300 billion worth of wealth). Now to my arguments.
Mining encourages the growth and development of renewable energy
Bitcoin mining rewards the most energy efficient miners with the most profit. Mining is about maximizing the number of hashes (computations) per kW of electricity. Currently, the most efficient way to generate the highest hashes/kW are through the usage of solar energy and hydro-electric, because those are the cheapest ways to produce electricity (outside of government subsidized energy). If Bitcoin continues to grow, the demand for solar energy will increase as folks rush to find cheaper ways to generate power. Additionally, renewable energy sources occasionally produce a surplus of electricity. Burning some of the surplus electricity to mine Bitcoin would offset the cost of running renewable energy sources, making them even more efficient.
Bitcoin infrastructure has a MUCH smaller footprint than legacy financial systems
In order to make Bitcoin work, you need electricity, computers, and the internet. That’s it. Fiat currency requires resources to print the money, oversight in order to make sure it is being allocated correctly, fraud services, entire organizations devoted to preventing counterfeiting, money transport services, and more. The list goes on and on, and is duplicated for every single fiat currency in existence. Bitcoin’s infrastructure needs are orders of magnitude smaller than fiat currency, and that’s just focusing on the resources to create the fiat currency itself. Bitcoin allows users to replace major use-cases of banks with their phones. You do not need a trusted third party to store your wealth or to participate in the global economy when you use Bitcoin. The faster the world adopts Bitcoin, the quicker we can reduce the environmental footprint of all of that paper/metal currency!
Bitcoin makes consumerism too expensive
Saving Bitcoin is more rewarding than spending Bitcoin, since it is a deflationary currency and a lucrative investment opportunity on its way towards global adoption. How much energy is used on consuming unnecessary goods? Fiat currency is inflationary, which encourages spending. Why hold onto depreciating dollars when you can get a sweet kick-ass jet ski? If your currency becomes more valuable over time, you weigh purchases based on needs vs wants. Even though you want that hot new 4k LED big screen, is it really worth it if holding onto that same amount of BTC could allow you to purchase a yacht next year? Once your current holdings can purchase a yacht, is a yacht better than waiting a year and getting an island?
Purchases will still happen, because people need food/shelter/water/Amazon Echos to survive. However, the people and companies producing necessities will become the wealthiest in the new global economy. Imagine how much waste we can reduce if non-essential items become additionally expensive through currency appreciation!
Don’t believe me? Get some Bitcoin and see how it makes you feel. If you think this is an argument against Bitcoin as a currency, you’re missing the bigger picture. This is Gresham’s law in action. It is much better to spend depreciating money like a hot potato, while hodling onto Bitcoin until you need to start spending it. Bad money will continue to circulate until it explodes, and then good money will sweep in to save the day.
Additional Resources:
My guide to getting started with Bitcoin: https://medium.com/@philgeiger/a-gentle-introduction-to-bitcoin-c8f6e55855c1
Find a Bitcoin ATM near you to try it out: CoinATMradar
USD Exchanges/Bitcoin banks: Coinbase, Gemini
Euro Exchanges: Bitonic, Bitstamp
Be your own bank on your phone or computer with a BTC wallet: Android — Samourai, Mycelium, iOS- Breadwallet, from a computer — Electrum