Elon Musk is definitely interested in digital currency, but it seems that he doesn’t want to understand it. At least, I worry that he doesn’t have a deep enough understanding of Bitcoin (BTC) and decentralized systems in general.
A decentralized system has to be secure, and proof-of-work (PoW) is the solution for Bitcoin to secure its digital asset. The more successful Bitcoin is, the more energy is required for PoW to secure the network. In other words, the reason that Bitcoin uses up so much more electricity than Dogecoin (DOGE), for example, is because BTC is much more secure than DOGE.
The irony of Elon Musk
From a power perspective, BTC uses up more energy in Bitcoin mining. This is due to the fact that Bitcoin is in a leadership position. The irony is that electricity is amorphous — amorphous in the sense that you don’t know where it comes from. Just by looking at a kilowatt of electricity transmitted to you, unless someone told you, you don’t know where it comes from. You have to track the origin source, where sometimes the source is green and renewable — such as solar, wind, hydro or geothermal — but sometimes the energy is dirty coal, nuclear and other dirty energy supplies that are out there.
The main issue is that energy itself is neutral. Energy doesn’t know where it came from. Energy is just energy — electricity. So, the irony is that with Elon Musk, the electric cars that he sells at Tesla are powered by the same energy that’s used in the coal-powered BTC mining machines. It is ironic that he’s been criticizing the mining machines for using up a lot of energy, as the Tesla cars are powered using a lot of energy that comes from all over the world. If you get to build and sell 10 million cars, they are going to use a lot of energy as a principle.
Who’s right, who’s wrong?
The way to truly get rid of dirty energy is to shut down production at the source: the power plant. This is the only way to get rid of unsustainable sources of energy. If Bitcoin mining is necessary, you may think that Christmas lights are okay or turning on the air conditioning is okay when in reality, Christmas lights — in my opinion — are truly unnecessary. I can also argue that air conditioning is also unnecessary. On the other hand, washing machines and dryers are necessary, but if you really wanted to, you could try to do the laundry naturally, by hand and in the creek behind your house.
Author: Cointelegraph By Bobby Lee
This post originally appeared on Cointelegraph.com News