I just ran across an article on Bitcoin Green where they were discussing that Bitcoin mining uses more power than 82% of the world's countries and that the rate of power usage is going up 20% PER MONTH and that it would soon be completely unsustainable. Just wondering about people's thoughts on Bitcoin Green.
I have a friend who is a permaculturist (has a PDC) & is really into digital currencies. I saw this thread & asked him about his thoughts on Bitcoin Green. Here was his response:
"It's proof of stake, so it distributes the inflation of coins to everyone proportionately to the amount they hold, which can be sticky because people with large sums of money easily acquire most of the weight. But POS is wayyy more sustainable. Nem uses something similar but with an added layer of proof of importance to not reward those who are just holding and not using the network and instead reward those who are active and spending on transaction fees in the first place. Nem is a fixed supply, no inflation. Bitcoin Green, I'm not sure if it's a bitcoin hard fork which is a bummer since that would let everyone switch over much easier in a way."
I then asked him to expand on Proof Of Stake (POS), because I had no idea what this meant, & this was his response:
"Proof of stake, you receive coins from coin generation and/or just the transaction fees people are paying on the blockchain. You receive a proportionate amount of coins as to how much of the percent of coins in circulation is in your possession. Which kinda makes the rich get richer because they are rich but it doesn't exactly matter because you're getting richer at the same percentage rate as they are, like I have 100 coins and you have 10, we'd both be getting 10% more coins for example, then you'd have 11 coins and id have 110, I earned more coins than you, but in the end its just inflation. Instead of just miners who are running the network earning and inflation of coins while you don't, which is more trickle down economics, but that's how gold is made. It's not at all like a banker printing out millions of dollars with the stroke of a pen, though."
He's a nem proponent, BTW, in case you were wondering.
Whenever I hear someone mention how much electricity it takes to run the bitcoin network, I always wonder how that compares to the fiat banking system. How much electricity does it take to run their centralized servers? Their headquarters? Each bank branch? Each ATM? Etc. Add in all the pain and suffering caused by the banking system's manipulation of politics and government, their regulatory burdens, and so on.
And then understand that the amount of money to be made as a miner is a mostly fixed pool, so new miners will only dilute the profits for all miners, and we'll eventually see mining growth tail off.
I'm not sure the economics of POS and other challengers to POW are viable, but I'm glad experiments are going on. Over time we'll find out which system works best.
Creator of Shire Silver, a precious metals based currency. I work on a permaculture farm. Old nerd. Father.
Montana has cold dark nights. Perfect for the heat from incandescent light. Tiny ad: