Bitcoin does need Energy, but if you thought these 5 Popular Claims are True, you probably have Mistaken
There has been much discussion in some media outlets that Bitcoin consumes high amounts of energy to be mined. This article throws some light on the Fear, Uncertainty and Doubt such myths create in the minds of general people. While Bitcoin mining is nothing to be worried about, the most important parts of this write-up are the real statistical data about the energy-related issues of Bitcoin mining. There is no problem of energy consumption with Bitcoin mining that would threaten the world. Read to know why.
Bitcoin mining does need palpable amounts of energy, and this is by no way an advantage for the world’s most popular cryptocurrency, but thinking that Bitcoin is going to lead the world into an energy-consumption apocalypse is just another lobby of the Bitcoin haters to devalue the reputation of the smartest currency the world has ever seen.
But before we show you some stumping myths that immediately make us worried here are some other considerable points that are related to this topic intricately. Firstly, energy is a very scientifically sensitive topic not only because energy is a limited resource but also due to the scientific truth that energy can neither be created nor destroyed, it can only be converted from one form to another.
That being said, we must also look into the fact that the energy consumption has been growing steadily with the progress and development of humanity. It is a given fact that as we consume more energy with a growing population and technology, we must not be frightened if the energy consumption grows drastically in the future. This has been happening since the end of World War II. So, the most important point to note before we talk about Bitcoin energy-consumption myths is that the demand for energy growing heavily is nothing too new, and even if Bitcoin mining were not an energy-intensive process, we probably would have needed the same amount of energy in future.
Now, let’s see some very attention-grabbing myths about Bitcoin energy consumption that are more FUD which stands for fear, uncertainty and doubt used to deviate the attention from the fact that Bitcoin is the undisputable leader among currencies we can probably think of for the future.
Myth 1: Bitcoin will Use up All the World’s Energy
Very exciting to realise if you have no idea of what energy consumption is all about, this is a blatant lie that has no scientific or factual truth. As the Forbes article notes, it is a myth spread among the netizens by the international banking lobbyists who know that their miserably inefficient and insanely less than efficient banking system is going to become redundant if Bitcoin becomes the main currency in the world let alone how much energy the fiat currency system guzzles.
There’s another interesting point to note in the article — it correctly points to the fact that if just the US and Europe tend to dump all internal combustion engines to get Electric Vehicles that is being promoted by all as the most needful option, the world will need at least 50% more electric energy within next 20 years. We think the FUD makes some sense now!
2. Bitcoin Mining would create a Dire Energy Shortage
This is another FUD theory to undermine the value Bitcoin generates. The myth-masters point to the fact that the Bitcoin network will consume a whopping 7.67 gigawatts (GW) of electricity in the near future while the fact is that the United States had 63 GW of capacity above and beyond the North American Electric Reliability Corporation (NERC) target reserve supply estimate that was made way back in 2012 for only the summer of 2013.
That is just the United States, which is only second in terms of energy use in the world after China, which might have way more extra capacity than the US. The point is, Bitcoin mining will neither threaten nor destabilise the energy consumption pattern anywhere in the world. What it will do is, in return of that 7.67 GW of energy, it will make the world a far more efficient place to live for the entire humanity (remember that Bitcoin uses Blockchain!).
3. It is proven that Bitcoin would start an Energy Apocalypse
This is a bit of exaggeration though, but what some pseudo-scientists believe is somewhat the same. In this case, The Washington Post that quotes the Newsweek shows that the world is in danger of an apocalypse due to Bitcoin mining while the media firm that is owned by Amazon boss Jeff Bezos forgets that Bitcoin would need about 7.67 GW of energy while the Amazon cloud computing operation in East US itself requires more than 1 GW of energy itself. Just one operation centre of the world’s richest person that is.
So, the fact here is that numerous such data centres are belonging to Microsoft, Google, Facebook and everything else, not to forget the renowned banking players, who might guzzle a lot more energy the entire Bitcoin community uses in the world. So, the apocalypse is now fixed, and you know who is going to trigger it.
4. It is Easy to Calculate Bitcoin Energy Consumption Demands, and It is Frightening
As our beloved scientists and big data analysts at the Newsweek believe that “Bitcoin mining on track to consume all of the world’s energy by 2020,” we think they should better get an idea of what 2020 means to them. Their assumption is not only wrong because they selectively pick queues that are irrelevant to the case but also because it is factually impossible to calculate how much energy Bitcoin mining would need in 2020.
So, you can easily see the panoramic fear these fiat media houses are creating — the solid example of FUD to dilute the idea of Bitcoin mining, right?
5. It is Dangerous because Bitcoin’s Electricity Need is a Big Problem
Publishing research is one thing and manipulating it by using statistics is another — that is what the big problem with Joule is. To mention, most of the full-text versions of such important research are usually kept hidden and available for a price, but since this paper is open to see for everyone, we thought we must also show some data to you people.
The fact is that total global electricity consumption is about 25,000 TeraWatt-hours, out of which Bitcoin mining uses only 0.5 per cent or 125 TWh (125,000 GWh) as of 2018. So, you can feel the heat already now because Bitcoin mining is also increasing global warming by at least 20%.
The next time you read something similar about Bitcoin mining, do not waste your energy in reading it at all.