Bitcoin Mining Uses Energy
See the rows upon rows of servers? Bitcoins have to be “mined” by powerful computers. This network of computers handles Bitcoin transactions and mines new coins. Imagine the carbon footprint of something like this.
This process requires an enormous amount of energy. The Bitcoin network consumes more power than 159 of all 195 countries in the world.
So, it’s easy to see why environmentalists hate Bitcoin.
But take into consideration how energy can and is being produced.
1. Solar-the sun is free.
2. Hydro-water movement produces power to turn turbines.
3. Wind turbines produce power.
It is only if the power used is produced by coal, gas or oil-driven turbines does the use impact the carbon footprint. Control of where the electricity comes from to drive the servers can control the impact. We can expect that the government will penalize server banks that use carbon-based produced electricity by taxing somehow their carbon footprint which may cause server banks to use one of the carbon-free sources or pay a price. This may have an impact on the cost of doing business on the blockchain which depends on mining and using electricity.
Is Digital currency the future?
However, we also have to consider that government may have to produce its own digital currency to control the digital market since it cannot control the blockchain program. It risks losing all this control if Americans switch to non-government money. According to Fed Gov. Lael Brainard, a digital dollar will ensure government-issued money “[stays] at the center of [the U.S.] financial system.”
Current Fiat Money Uses Power to Print And Mint
in 2020, 6 billion paper notes were printed. The cost to print these notes amounted to $843 million. That’s almost $1 billion the U.S. Bureau of Engraving and Printing has to spend each year just to produce our paper money. Printing and stamping coins use power and have a carbon footprint. Will this be considered when setting up a new Government controlled digital currency? Time will tell and it may be sooner than we think that the government will create a centralized digital currency for use in the USA. You see, just like paper notes require a printing press, the digital dollar needs to run on specialized technology. It’s the same kind of technology that’s behind Bitcoin and other cryptocurrencies. This technology is called the blockchain. Blockchain technology is the foundation of all digital currencies.
The Blockchain is the Future for Currency
All the information processed through the blockchain is locked in — no one can change it… not even the entities that design or run these machines. And the blockchain is already here, even if most people don’t know it yet. If you’ve recently bought milk, chicken, or a pack of gum at a supermarket, that was blockchain technology at work. To be on top of what is happening globally, all you really need to understand is that blockchain technology is the critical component to the digital dollar and the massive transformation in our entire financial system that’s now underway globally.
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