Bitcoin – not for me.

The recent enthusiasm for Bitcoin bothers me.

Not because it has got to the “taxi drivers are talking about it” indicator of bubble status.

Because it is being used widely enough to stay in use when the bubble bursts.

Many of the people using it are interested in the environment, and approve of replacing still-working globes with LED globes to reduce power consumption. They may have installed solar PV panels to contribute to low-emission power.

How will they feel when they understand the impact of the bitcoin computing approach?

The ConversationDigiconomist and IEEE   put it clearly.  A Bitcoin transaction uses 5,000 times as much energy as using a  credit card, and the energy cost will increase as the blockchain lengthens.  The multiple servers maintaining copies of the ledger, and comparing their versions, and doing the complex calculations to solve a puzzle  to be the lucky one to generate a Bitcoin (all the others’ discard the work they have done, wasted electricity) – all burn power and generate waste heat.

I believe  that cold climates are more ethical server locations, as the heat generated can at least be used for warming buildings or preheating for hot water systems, but even so the process leaves me uneasy.

I am glad that the alternative blockchain designers are testing less power-hungry approaches.  Until Bitcoin changes its approach, I think it should be avoided.

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