Why Waste Energy On Bitcoin

The Bitcoin network requires the use of a lot of electricity. This is no secret, and something the mainstream media (a group that has collectively spent ~10 minutes studying Bitcoin) reminds us of regularly.

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But Bitcoin’s energy requirements are a feature, not a bug, for the protocol.

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Without getting technical, Bitcoin relies on miners to run and secure the network. These purpose-built computers - crucially - verify transactions and compete for newly minted bitcoin by “mining” for new blocks.

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What the Bitcoin network’s energy use and requirement for specialized hardware mean is that nobody can control the network. The “proof of work” mechanism, as we call it, puts a real world constraint on individuals, businesses, and nations. One must diligently source the cheapest energy possible, procure highly demanded hardware, and acquire or outsource the expertise to manage and maintain a mining operation in order to compete.

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That is a tall order, even for a global superpower, because the free market nature of Bitcoin mining ensures that supply and demand dynamics play out to the frustration of mining participants and to the advantage of the network as a whole.

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When you are tempted to believe that Bitcoin “uses too much energy,” remember also to pause and consider the trillions of dollars and immeasurable amounts of energy required for various wars to protect US dollar hegemony, the manpower and gasoline needed to fuel thousands of armored trucks collecting cash from businesses each day, and the millions of commuters working in financial services that would be unneeded in a less-financialized economy on a sound money standard.

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You don’t have to deeply understand the way bitcoin is mined or the technology of the ASIC machines being used. You just have to understand that the logistics of the free market make it nearly impossible for a single entity or group to fully monopolize and control the space.

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That is a powerful and crucial point that few understand today, but as more begin to, faith in the network - in the form of adoption - will grow.

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