Michael Saylor: Bitcoin Mining Is the Most Efficient Industrial Electricity, Less Energy Intensive than Google

Michael Saylor, former CEO of MicroStrategy and a Bitcoin advocate, wrote in his column on the energy issues of Bitcoin mining that Bitcoin mining is the most efficient and cleanest way to use industrial electricity, and it is the most efficient and cleanest way to use electricity in all major industries. The fastest speed to improve its energy efficiency.

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In this article titled “Bitcoin Mining and the Environment,” Michael Saylor takes a closer look at the relationship between Bitcoin’s energy use and the environment. He said in the article that about 59.5% of Bitcoin’s energy comes from sustainable energy, and its energy efficiency has increased by 46% year-on-year, including industries such as airplanes, trains, automobiles, healthcare, banking, construction, precious metals, etc. “No other industry can match.”, this is due to the continuous improvement of the semiconductor (SHA-256 ASIC) that powers Bitcoin mining, coupled with the halving of Bitcoin mining rewards in the protocol every four years, the energy efficiency of the Bitcoin network has been continuously improved, year by year. Continued increase of 18 to 36%.

Michael Saylor also clarified the energy stigma of Bitcoin. He pointed out that Bitcoin is using excess electricity at the edge of the grid, and there is no other excess demand. In contrast to retail and commercial electricity in major population centers, consumers pay 5 to 10 times more per kWh than Bitcoin miners (per kWh). 10 to 20 cents per hour), so Bitcoin miners should be considered “wholesale consumers of energy”, the world generates more energy than it needs, and about one-third of that energy is wasted, this energy powers the entire Bitcoin network, and this electricity is the lowest value and cheapest marginal energy source left after 99.85% of the world’s energy is allocated to other uses.

Michael Saylor went on to analyze that, in terms of Bitcoin value creation and energy intensity, approximately $400 billion to $5 billion of electricity is used to power and protect a network worth $420 billion today and settle $12 billion per day ($4 trillion per year), In other words, the value of the output is 100 times the cost of the energy input, Bitcoin is far less energy intensive than Google, Netflix or Facebook, and less energy intensive than the traditional production of airlines, logistics, retail, hotels and agriculture. He pointed out that 99.92% of global carbon emissions come from industrial uses other than bitcoin mining, and bitcoin mining is “not a problem,” which he believes is misleading.

As for Bitcoin compared with other cryptocurrencies, Michael Saylor once again emphasized that cryptocurrencies other than Bitcoin, moving towards Proof of Stake, will be more like stocks than commodities, and PoS encrypted securities may be suitable for some applications, but they are not suitable for use as a global, open, fair currency or a global open settlement network, so “it makes no sense to compare PoS networks to Bitcoin.”

“There is a growing awareness that bitcoin is very good for the environment because it can be used to convert idle natural gas or methane gas energy.” Even now there is a shortage of energy, he said, there is still no other industrial energy source that can use excess power and cut back Electricity usage.

Finally, Michael Saylor pointed out that Bitcoin is a tool that empowers 8 billion people around the world economically, Bitcoin miners can use energy at any place, time, and scale, and provide energy for developing countries, Remote areas bring prospects, Bitcoin “only needs to be connected through Starlink, and the electricity required is only excess electricity generated from waterfalls, geothermal or miscellaneous excess energy deposits”, compared to Google, Netflix and Apple, Bitcoin miners are not Not bound by these limitations, miners are everywhere as long as there is excess energy and anyone who desires a better life. .

“Bitcoin is an egalitarian financial asset that provides financial inclusion for all, and mining is an egalitarian technology that provides commercial inclusion to anyone with the energy and engineering capabilities to run a mining center.”


Post time: Sep-26-2022