Search form

Comments (2)

avatar

Ginger Paque August 17, 2017

Thanks, Arvin. Your blog posts help understand different facets and nuances of Bitcoin that I would not otherwise be aware of. Another aspect of Bitcoin which amazes me (and I'd love to read your analysis and position) is Bitcoin energy consumption. I would never have thought that virtual mining had an energy cost! I'm referring to Digiconomist's Bitcoin Energy Consumption Index chart at https://digiconomist.net/bitcoin-energy-consumption and the rebuttal at http://blog.zorinaq.com/serious-faults-in-beci/ Do you have any insights on this?
avatar

Arvin Kamberi August 23, 2017

Thanks for the comment Ginger. Indeed vast amount of data generated in Bitcoin system might be a burden for the flexibility. Bitcoin blockchain is inefficient by design. Miners actually run their graphic card processors (GPU) in order to verify the whole network, and 'mine' the new amounts of currency. Miners network is large (generating 6 ExaHash per second) and consumes a lot of energy. One transaction verified on Bitcoin network requires 100 time more energy that a credit card swipe. Nevertheless, energy efficiency of Bitcoin block chain might not be such a big problem. Decentralized property of system might have different solutions for mutual verifications. There are also plans to transition away from current energy-intensive mining algorithm trough Proof of Stake system (rather than Proof of Work system implemented in Bitcoin) on Ethereum network (link: https://motherboard.vice.com/en_us/article/d3zn9a/ethereum-mining-transaction-electricity-consumption-bitcoin)

Leave a comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.
Scroll to Top