I was wondering what viewpoints and opinions this community has when it comes to cryptocurrency.
Personally, I’m not against it, but I’m not for it either. I like the concept of bringing back cash anonymity, and also decentralization (obviously). Although I don’t think it will be viable for at least another decade.
I use Monero for private transactions and I am thankful for the existence of a private, untraceable currency (like most cash transactions IRL). I am concerned by the amount of energy expended on crypto-mining… it is a dreadful use of energy that could be used for far more productive purposes.
Honest question, since the goal of cryptocurrencies is to illuminate the banking system. Roughly how much energy does the banking system use? Because if mining uses less than that, it would be a net improvement.
It’s possible to see an estimate of how much electricity is being used for bitcoin (obviously not the only currency being mined). Higher prices results in more mining so the amount of electricity varies all the time. Here’s a graph showing estimates of energy consumption. I guess you can come up with an estimate because you could have an idea of how much it costs to mine a bitcoin and you would see them entering circulation on the blockchain.
During its peak in 2021 it was using about the same amount of electricity as Norway or Argentina uses in a year (according to a University of Cambridge analysis).
Compared to these amounts the banking system would be using a tiny proportion given that fiat currencies don’t need to be mined they are just created by the banks when they issue loans.
Don’t forget the other things that go into the banking system though. You’ve got the mining for minerals to make their buildings. You’ve got the gas that it takes to get employees to and from work, the electricity to power those buildings, the electricity to make and distribute coins and physical money, The presses and machines to make physical currency, etc. And there’s probably a ton I am missing.
You can certainly include all that stuff too, but the banking system provides services for 67% of the world’s population. Bitcoin is owned by about 100 million people.
And I don’t think Bitcoin is the end-all, be all cryptocurrency. In fact, I don’t even have any. What I prefer using is Monero. It is still a proof of work coin yes, but instead of using ASICs, it uses CPUs, so it uses a lot less power. Having ASICs Promotes centralization of mining hashrate, and therefore it’s easier for the government to require rules be followed. A few examples are OFAC compliant transactions only, mixers, etc.Monero does not have that problem because how are you going to ban CPUs from being used by normal people without just straight out banning the use of any computing device? And that would not go over well.
The banking system uses magnitudes more.
The big banks pushed a huge misinformation campaign to convince people that cryptocurrency was using lots of energy, but its negligible next to the banks.
Its like tobacco companies trying to convince us that smoking is healthy. You need experts to disprove the well-funded misinformation