Bitcoin: "Energized Digital Property, Money, Gold, and Energy"
Subhead: "Bitcoin Energy Use Negligible and Justified for Massive Upside Potential"
People parrot what those who don't understand Bitcoin say:
- Bitcoin consumes massive amounts of energy
- Fear + Uncertainty + Doubt (FUD - or why Bitcoin FUD is irrational)
- Proof of Work is bad compared to Proof of Stake (e.g. "change the code"/Greenpeace nonsense. An entire post coming up on Greenpeace.)
Reality is Bitcoin uses negligible amounts of Energy and refines it (think digital oil) to create decentralized, without permission, 100,000,000 sats of encrypted digital energy, commodity, wrapped in an immutable container called Bitcoin. Able to be sent at the speed of light to billions worldwide without friction.
"A dollar is not a dollar, but one bitcoin is one bitcoin." - Robert Breedlove
(Check out why with "Bitcoin: Absolute Scarcity..." or follow expert DerGigi on Scarcity. Incredible Bitcoin expert.)
"Nonetheless, taking into account the creation of money, transporting money, physical banking infrastructure energy consumption, etc, he arrives at a figure of 4,981 TWh. Rounded up, 5,000 TWh is consumed by the “classical payments” sector every year. Consequently, banking uses 56 times more energy than Bitcoin.Jun 16, 2022"
Further, the most profound part is over time:
On Bitcoin energy usage Lyn Alden is an incredible analyst, who has only been in the Bitcoin camp since 2017. She did some incredible analysis recently on how Newsweek, back in 2017, said Bitcoin would use all of the world's resources. (The World Economic Forum - WEF - predicted similarly.)
Lyn wrote this recently update article: "Bitcoin's Energy Usage Isn't A Problem. Here's Why"
She starts by saying how Newsweek did this prediction:
For example, back in December 2017, Newsweek ran a piece called, “Bitcoin Mining on Track to Consume All of the World’s Energy By 2020“
All the world's Energy: 176,000 TWh
Bitcoin usage: 100 TWh
(As Lyn stated, less than one tenth of one percent and never mind the well known 2-3% off either way factor with this type of analysis. One word English translation: NEGLIGIBLE. The business term is 'Rounding Error.')
Update 2/20/2023: Listen to Saylor explain the Bitcoin Energy Usage compared to the US Navy, the "Nuclear Navy", more distributed, wall of energy, "silicon ratchet","all the computing power in the world, 10%, wouldn't dent Bitcoin" : https://twitter.com/i/status/1627322542355582977
So look at those pointing the fingers at Bitcoin, the most threatened, the banking 'industry' or once removed, just follow the money tree. So, how much energy do banks use world wide?
Banks: 4,981 TWh
Me:
I am not here to change your mind on traditional banking, it just fails (F-) on so many fronts, including keeping my money 'safe' as it disappears by 8% a year via inflation. Are banks really 'interest'ed in me or better off spending $100s of millions on naming rights to some stadium to show how much they care for their customers. Their Company Core Values say it is so?
Bitcoin is the antithesis of Banks: No C-Suite, no buildings, self auditing, no marketing, no people, no ringing the bell to open the stock market, no meetings, no KPIs or metrics, or Q1/Q2/Q3/Q4, no retreats, no forcing people into an auditorium to listen to you blather on saying nothing outside your boring powerpoint slide decks, no outsourcing, no IT, no helpdesk, no 1-800 number to a phone tree from hell, no reviews, no raises, no bonuses, YET with Bitcoin your money is safe, protected by a digital Fort Knox, protected by energy comprised of a worldwide army of motivated invisible soldiers via anonymous computers. No specific country. Just Humans. Uncrackable/Un-hackable/Indestructible/Genius Math all in an Open Source Ledger. (Bitcoin Core on GitHub)
Today's Banks with Wire Transfers are as pathetic as current reliance of Fax machines in the US Healthcare system. Seriously, this 2023? There is room for changing the Status NO (aka BITCOIN.)
Banks: The FDIC covers you UP to $250,000 per account? What if you have more? Also, banks make billions off of 'safe deposit' boxes but did you know by law banks don't have to cover your safe deposit box in a disaster. I remember the early days of the George Floyd riots, walking distance from our house, the burned out Wells
Fargo and the rows of burned up Safe Deposit boxes. Safe? 
There is room for a digital property, not even saying currency. Simply as a store of value, that I trust, because self serving, selfish, selfie driven people are not in charge when it comes to Bitcoin. I am. You are. Especially for the Unbanked and Underbanked who can't afford the minimal balances, the fees, the penalties as banks slowly take what little they have.
Solution: Bitcoin Self Custody. Satoshi's incredible vision brought about by his/her/their motivation because of the 2008 crisis. Banks have had their day in the sun, however banks are getting digitally squeezed and shocked and jolted and zapped. Bitcoin is not a phase, and Banks will be tased, by an amazing worldwide grass roots network of motivated people running computers.
Bitcoin is timeless. Like the timestamped Timechain of Bitcoin since day one.
The world runs on emotion and words and people (e.g. Politicians, influencers, humans.) Bitcoin runs on logic and math and computers. With the latter, there is way less drama and confidence in restoration of humans as the one race we are.
But back to the outrageous claims of the energy usage of Bitcoin. It is tiring. Untrue. For the value of protecting my assets? The cream I have skimmed off the milk for years? I don't want it to spoil under someone else controlling the thermostat or for them to slowly steal it with fees and penalties or bad C-Suite members making terrible decisions. Class action lawsuits where some of these companies gladly pay out $100s of millions to billions of dollars. Cheaters. With your money. They got caught...but with $100s of millions in good marketing, let's keep the gravy train on the tracks?
BATHTUB SECTION:
Where I just compile information for your consumption to make decisions. This section is dynamic and I will update it as frequently as possible. The timestamp won't change on the original document so I stamp it manually when I add.
Saylor Section:
- An open letter to Journalists etc. on "Bitcoin Mining and the Environment."
- Bitcoin Mining Council Q3/2022 "Global Bitcoin Mining Data Review" Entire Slide Deck
Me: Bitcoin energy similar to Holiday Lights and Gaming, with Newsweek and the WEF's horrendous Bitcoin prediction, they must have forgotten about HVAC, Automobiles, and Airplanes? I think we can agree that Russia's outrageous aggression in Ukraine has made us value heat, being able to cook, bathe, refrigerate our foods. Coincidentally, Bitcoin has also helped Ukraine during terrible times. Where banks failed, but I digress.
- Saylor's Pinned Tweet as of today, totally applicable to this post:
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https://www.washingtonian.com/2022/04/18/a-conversation-on-crypto-with-michael-saylor/
April 6, 2022.
<snip>
Cathy Merrill: Okay. On mining, because there’s a lot about this about energy. And China, as you know, banned crypto mining, so now about 35% is done in the United States. And for those people new to this, the mining is when those transactions get added to the block, it’s a lot of computers that are following it, and those computers take up a lot of energy. Does that bother you?
Michael Saylor: No, actually that’s what makes it immortal and incorruptible. The Bitcoin mining process is the process of taking raw electricity and then encrypting it with the SHA-256 algorithm. So it’s encrypted energy. You’re digitally transforming the energy using a semiconductor chip, which we call Bitcoin miner. And traditionally the biggest manufacturer of that hardware were Chinese companies like Bitmain. But Intel just announced last week that they’re going to be producing Bitcoin miners and a new Bitcoin mining chip. So the way the network works is I buy the Bitcoin miners, I put it in a data center, I feed it electricity. It throws up a wall of encrypted energy to protect your assets from a hostile attack by a hacker or a nation state or a mal factor. If you didn’t do that, then someone could just come up with acute piece of code, hack the system and steal all of the hundreds of billions of dollars. And if they did that once, that’s the end of the world.
Cathy Merrill: Do you ever think mining will be carbon neutral?
Michael Saylor: The most important thing about mining is it’s the cleanest, most efficient energy use in the world. I mean, this is the cleanest industry in the world. Many people don’t realize that. That’s because most of the ESG FUD is spread by other crypto network entrepreneurs that are using it as gorilla marketing. So they would want you to think that there’s an issue. But if you thought about it for a while, you would realize that… Let me just give you the fact. Bitcoin mining uses 14 basis points of the world’s energy. So like one 10th of 1% of all of the energy in the world is Bitcoin mining. It’s really de minimus. Second, it’s going to decrease. It’s headed toward one 100th of 1% because the semiconductor technology has improved by orders of magnitude.
So it’s just like Moore’s law. We keep making the chips faster. So as companies like Intel, they just released a chip that’s 21 joules/terahash. And it used to be we used 1,250 joules/terahash. So it used to be a hundred times more energy intensive to mine. So the industry itself is a technology business getting exponentially more efficient. But if you look at the electricity, the electricity used is 58% sustainable already, which means that is cleaner than electricity in your Tesla or is cleaner than all the energy used in planes, trains, automobiles, buildings, food, hospitals, national defense, banking. Every other thing in the world uses dirtier energy and more energy. So if you’re really an environmentalist and I told you that 99.95% of carbon emissions come from stuff that’s not Bitcoin and Bitcoin energy efficiency is improving 36% a year.
<snip>
So if you want to create a non-security, if you want to create a property, it has to be open to permissionless. The only way that we’ve ever figured out how to do that in the history of the world is proof of work mining, which is what the Bitcoin mining network is. So it’s not causing a carbon problem, it’s not even a big energy user, it’s simply is a extremely efficient use of energy because you put about $2 billion worth of electricity into a network to create an $800 billion of value. And if you compare that energy efficiency to $2 billion put into the airplane business, you realize that it’s 1,000 times more expensive to fly an airplane around and get value from that as it is to keep track of or keep a digital asset secure.
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Mind blowing idea, what if Bitcoin mining actually transforms the energy sector "Why Bitcoin Mining is the Future"?
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1/13/2023: Historical Saylor Tweets:
& Lightning
applications, treasury theory, & FUD.
2/20/2023: You can even Mine Bitcoin with a Pencil
https://www.righto.com/2014/09/mining-bitcoin-with-pencil-and-paper.html
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