Bitcoiners long for the good old days of good debate with informed critics ready for an intellectual challenge. Help the community to refine the thought process. Build knowledge and skills to expand discussions and discussions. and generally reinforces our commitment and commitment to our investment thesis.
Unfortunately, we’ve been out of training for about seven years now. Without any criticism of Bitcoin that has not been rejected by the deadly facts. Critics used to be a cold bottle of Classic Coke, now what we get is warm, off-brand and generic cola.
and you, Elon? passed together?
so that this article can be read within a reasonable period of time I will rely on the reader to delve into the arguments of these arguments. It is prepared by industry experts based on hard data and computer science. and I will be widely associated with their work. throughout this piece
We’ll cover three paragraphs in Musk’s tweet one by one…
1. “Tesla has suspended buying cars using Bitcoin. We are concerned about the rapidly growing use of fossil fuels for Bitcoin mining and transactions. Especially coal, which has the worst fuel emissions.”
I have two words for you, Mr. Musk: “Prove it.” Prove that the use of fossil fuels in Bitcoin mining is increasing. Unfortunately for everyone, here it is:
- It is impossible to do with 100% accuracy due to the decentralized nature of the industry and the impossibility of exploring every mining in the world.
- Not what the literature says: A) The Cambridge Center for Alternative Finance estimates that 76% of all miners use renewable energy as part of the mix, with between 29% and 39% of all energy used coming from renewables. considering the industry Data from the world’s largest miner and mining group B) CoinShares estimates that the total share of renewable energy could reach 73%.
2. “Cryptocurrency It’s a good idea on many levels, and we believe that cryptocurrencies have a bright future. But this cannot damage the environment.”
Here’s what it looks like Musk might be making a statement under duress. Musk clearly knows that methane is 50 times more effective on greenhouse gases than carbon dioxide, and he certainly knows that there are now miners using waste methane to mine bitcoin, such as Upstream Data, Great American Mining. , Giga Energy, Crusoe Energy and Wesco Operating, Inc. are just a few examples.
Maybe he didn’t know that in the US alone, 538 billion cubic feet (cf) of methane was drained and exploded in 2019. We know that 1 cf of methane equals 0.29 kilowatt hours (kWh) of energy (and 1 cubic foot meter equals 10.28 kWh), so we calculate that 156 terawatt hours (TWh) is wasted on flaring. That’s more than enough to power Bitcoin for a year. Globally, the total number of flares is 150 billion cubic meters, or 5.3 trillion cubic feet, resulting in a waste of 1536 TWh, which is enough to power it. with Bitcoin 10 times more
Is Bitcoin real or not? save planet? The Aker Group seems to think so in its latest letter to shareholders and through the founding of Seetee.io, a venture dedicated to achieving these environmental ends. This is also seen in many other industries, where the heat from Bitcoin miners is used to increase the productivity of greenhouse farming in the Arctic environment. Build a home boiler, distill whiskey and even produce fine salt flakes. The International Energy Agency (IEA) regularly monitors the reductions in flares, with the “Sustainable Development Situation” (SDS) not surprising with its current status as “Out of the way”
“There is an increasing number of voluntary government and industry commitments to eliminate flaring by 2030,” according to the IEA. With the government policy and commitment of the whole industry except for disposal by 2025.”
I hate to destroy it for you guys. But the only way to approach a lofty goal like eliminating all international flashes by 2025 is. very More Bitcoin Mining!
3. “Tesla will not sell any Bitcoin and we intend to use it to transact as soon as mining turns into more sustainable energy. We are looking at other cryptocurrencies that use <1% of Bitcoin energy/transactions.”
There are actually three sentences that must be stated here. Even though this paragraph contains only two sentences! Tesla apparently hasn’t sold any bitcoin, but it may have bought more after Musk’s tweet, which caused a $3.45 billion liquidation. (https://archive.is/wjcb7) Including $1.8 billion bitcoin, $120 million dogecoin and $60 million shiba inu coin, not surprisingly, $2.85 trillion (yes, trillion with “t”) was settled. Account wow.
on second thought The announcement of additional Tesla purchases could prompt an official visit as Musk’s negligence has destroyed more than $1 trillion in wealth in the weeks since his tweet. So doubling the Tesla will not have the best lens. From the perspective of market manipulation He also caused great damage to Tesla shareholders with his antics. So perhaps he needs to answer questions from them as to why he decided to break Bitcoin from orbit when his company owns more than $1.5 billion. But I’m ranting…
Musk went on to say that they intend to use bitcoin as mining turns into more sustainable energy. US energy grid It uses 20% renewable energy and 19% coal, and Tesla’s second largest market is China, with 28% renewable electricity grids and 64% coal. In the worst case, Bitcoin can circulate 29%, and in the best case it is about 73%, but is probably the closest around 39%.
This is a better figure than the US or Chinese grids, so if Musk is serious about sustainable grids We invite him to stop selling his cars in the US or China. Since the electricity that goes into his car is dirtier than it goes into Bitcoin, maybe he can resell once the grid is 100% sustainable? He hasn’t educated us on the ideal grid combination before he felt good about using Bitcoin.
Finally, he said he was looking. cryptocurrencies With less than 1% of Bitcoin’s energy per “transaction”, he’s in luck! There is a digital currency that has been working for almost three years. It uses only one-eight millionth of Bitcoin “per transaction” — known as Bitcoin! Yes, you heard that right — one in eight million? 0.0000000000000000000000001% of energy per transaction!
Now Musk may not have learned about Bitcoin payment methods and transactions before he spent $1.5 billion. but effectively The way Bitcoin works is every 10 minutes or so. total world money supply Alongside every historic settlement is meticulously inspected and inspected And there are a few thousand more settlements in Bitcoin’s underlying blockchain. That’s a broad and simple explanation of Bitcoin’s underlying mechanics as you can. In addition, all of Bitcoin’s energy consumption is focused on monitoring. Exam and secure money By settlement, there is little to zero energy consumption.
Note the use of the word The deliberate and heroic repetition of “settlements” led to this point. As I hope to impress you with the importance of keeping settlements and transactions separate. (This article by legendary Nic Carter is a great place to start!). Every payment is a transaction. But not all transactions are liquidated. What this means is that although Bitcoin can only make 3.5 payments per second, But the number of transactions within each payment can range from “One transaction” to hundreds of transactions through techniques such as transaction pooling.
In the second layer of Bitcoin, such as the Lightning Network or Liquid sidechain, the number of transactions per second is theoretically unlimited. New developments such as Taproot are likely to be rolled out later this year. This will make the base layer more efficient. Although not the exponential increase Musk had hoped.
Musk is good at math and calculus. And he hopes to understand the concept of limit. Therefore, he should note that while the denominator in fractions tends towards infinity, The resulting answer is close to zero. For example, Bitcoin currently uses about 116 TWh per year, assuming about 3.5 settlements per second, or about 110 million per year. If each settlement is assumed to contain only one transaction, then yes, Bitcoin will use 116,000,000 kWh / 110 million = ~1 MWh per transaction.
Considering that homes in the United States On average, 77 million British thermal units (BTUs) are consumed per year (equivalent to 22.5 MWh) in 2015, one “transaction” could power a US home. However, if you are assuming 10 transactions occur in the settlement, then your “per transaction energy consumption” will be zero as described above. It could be said that it’s just 100 kWh instead of 1 MWh. If you go further and learn about a second layer like Lightning Network, you’ll learn that the limit for transactions per settlement is theoretically infinite. Average per transaction is 116 TWh per year divided by infinity. which is closest to zero
We’ll never know exactly why Musk said and did what he did. What we can get from this point is that knowledge and the spread of facts are of the utmost importance to Bitcoin’s growth. A “genius billionaire” can easily get sucked into a lie and make a trillion dollars. of damage
This is a guest post by Hass McCook. Comments expressed are all their own. and does not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.