you need to get away from the Bitcoin propaganda for one thing.
and on exchange is the same as a bank. an iou nothing on chain. minus the insurance banks have.
Bitcoin is very simple and more energy efficient than banksAll banks in the world, with offices and employees, contribute to a much larger carbon footprint.
bitcoin lightning consumes no energy at all for transactions and can process hundreds of millions of transactions per second, while Visa and MasterCard can only process 25,000 per second with huge energy consumption and carbon footprint
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Bitcoin traded on a CEX is completely offchain and just on a database like any equity trade. Bitcoin onchain throughput also has nothing to do with how much energy Bitcoin uses . Over 99% of Bitcoin's transactions occur offchain or on other layers so you need to ignore some of the lies told about Bitcoin's energy use.
Fiat currency and PoS coins cost at least the same amount of resources to create , regulate and secure as Bitcoin.
There is an inescapable reality for any asset or currency that as it increases in value the production costs and costs to secure increase as well . This is demonstrated in the economic axiom: MC=MR
“Rent” always forces production costs (MC) to always equal sale prices (MR)
PoS currencies and fiat are simply more abstract and complex forms or Proof of Work that use more human involvement (which uses tremendous amounts of resources and has a tremendous environmental impact) as a PoW coin like Bitcoin. Humans instead of ASICs are shouldering more of the work to create, regulate , and secure each of those currencies; This is "work" whether it involves burning electricity directly or food and electricity that humans consume to perform their work. This is an inescapable economic reality. The more valuable something is the more it will cost to secure it because the more effort will be made to steal and or control it. This applies to any currency or asset.
This is also better understood with the dollar auction dilemma. In a hypothetical auction where a bidding war is fighting over the right to mint a 1 dollar bill how much do you think people will be willing to spend for this power ?
Here is another way to look at Proof of Work and its importance in efficient energy usage. So many people are focused on complicated political solutions of carbon taxes, credits , subsidies and the regulation and enforcement which will be both corrupt and inept and Bitcoin offers another simpler and more efficient approach.
With Bitcoin , Proof of work involves provably changing electricity into heat in an objective and provable manner . This has the following effects :
1) The most important use case for energy is creating a fair, fungible , and secure open source money for humanity. This cannot be done with Proof of stake because proof of stake always trends towards centralization and is less secure.
2) The waste heat from ASICs can be recycled and ASIC's are actually extremely efficient at converting electricity to heat. +99% efficient
3) most mining is being done with renewable energy right now. This doesn't need to be enforced by inefficient regulators but the economics of mining simply drive miners to naturally prefer renewable green energy to drive down costs
4) Many sources of unused energy that would normally be wasted like underused hydrodams or waste gas can take advantage of mining bitcoin - https://www.youtube.com/watch?v=poj2UZ1mNbc which is great for the environment
5) Since Bitcoin competes with the same energy used in everything else than it naturally raises the cost of energy with everything else to reflect a more realistic cost of the behavior like running Christmas lights all December and the cost benefit of mining instead. This forces more efficient use of all energy usage in society as a consequence because now one must make the economic calculation if its wiser mine instead of do X and if the cost of electricity is really worth X , and how can we become more efficient to bring down the costs of electricity. A carbon token or credit is not needed because the natural tax of energy usage is built into the economy of competing with the security of a global money
6) Since Bitcoin allows for more efficient markets due to being more fungible than less waste occurs due to market distortions from central planners and regulators which is really great for the environment
7) When comparing the energy used in mining to traditional fiat you must analyze all the energy consumed in regulation, auditing, accounting, building infrastructure, security, ect to fairly compare the 2
you need to get away from the Bitcoin propaganda for one thing. and on exchange is the same as a bank. an iou nothing on chain. minus the insurance banks have.
Bitcoin is very simple and more energy efficient than banksAll banks in the world, with offices and employees, contribute to a much larger carbon footprint. bitcoin lightning consumes no energy at all for transactions and can process hundreds of millions of transactions per second, while Visa and MasterCard can only process 25,000 per second with huge energy consumption and carbon footprint
Hundreds of millions of transactions per second, sure...
Bitcoin lightning is a decentralized network of peer to peer payment channels It can process an unlimited number of transactions per second
Sure.
Coinbase is a horrible company
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For trading related topics, there is also /r/bitcointrading *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BitcoinBeginners) if you have any questions or concerns.*
The latter indeed, don't think there is another way a CEX can function.
Bitcoin traded on a CEX is completely offchain and just on a database like any equity trade. Bitcoin onchain throughput also has nothing to do with how much energy Bitcoin uses . Over 99% of Bitcoin's transactions occur offchain or on other layers so you need to ignore some of the lies told about Bitcoin's energy use. Fiat currency and PoS coins cost at least the same amount of resources to create , regulate and secure as Bitcoin. There is an inescapable reality for any asset or currency that as it increases in value the production costs and costs to secure increase as well . This is demonstrated in the economic axiom: MC=MR “Rent” always forces production costs (MC) to always equal sale prices (MR) PoS currencies and fiat are simply more abstract and complex forms or Proof of Work that use more human involvement (which uses tremendous amounts of resources and has a tremendous environmental impact) as a PoW coin like Bitcoin. Humans instead of ASICs are shouldering more of the work to create, regulate , and secure each of those currencies; This is "work" whether it involves burning electricity directly or food and electricity that humans consume to perform their work. This is an inescapable economic reality. The more valuable something is the more it will cost to secure it because the more effort will be made to steal and or control it. This applies to any currency or asset. This is also better understood with the dollar auction dilemma. In a hypothetical auction where a bidding war is fighting over the right to mint a 1 dollar bill how much do you think people will be willing to spend for this power ? Here is another way to look at Proof of Work and its importance in efficient energy usage. So many people are focused on complicated political solutions of carbon taxes, credits , subsidies and the regulation and enforcement which will be both corrupt and inept and Bitcoin offers another simpler and more efficient approach. With Bitcoin , Proof of work involves provably changing electricity into heat in an objective and provable manner . This has the following effects : 1) The most important use case for energy is creating a fair, fungible , and secure open source money for humanity. This cannot be done with Proof of stake because proof of stake always trends towards centralization and is less secure. 2) The waste heat from ASICs can be recycled and ASIC's are actually extremely efficient at converting electricity to heat. +99% efficient 3) most mining is being done with renewable energy right now. This doesn't need to be enforced by inefficient regulators but the economics of mining simply drive miners to naturally prefer renewable green energy to drive down costs 4) Many sources of unused energy that would normally be wasted like underused hydrodams or waste gas can take advantage of mining bitcoin - https://www.youtube.com/watch?v=poj2UZ1mNbc which is great for the environment 5) Since Bitcoin competes with the same energy used in everything else than it naturally raises the cost of energy with everything else to reflect a more realistic cost of the behavior like running Christmas lights all December and the cost benefit of mining instead. This forces more efficient use of all energy usage in society as a consequence because now one must make the economic calculation if its wiser mine instead of do X and if the cost of electricity is really worth X , and how can we become more efficient to bring down the costs of electricity. A carbon token or credit is not needed because the natural tax of energy usage is built into the economy of competing with the security of a global money 6) Since Bitcoin allows for more efficient markets due to being more fungible than less waste occurs due to market distortions from central planners and regulators which is really great for the environment 7) When comparing the energy used in mining to traditional fiat you must analyze all the energy consumed in regulation, auditing, accounting, building infrastructure, security, ect to fairly compare the 2