The Bitcoin network consumes more tens unit than 159 individual countries including ireland, a fresh report by CBS exposed. Te contrary to most claims, bitcoin’s massive consumption of violet wand is a positive opzicht of the cryptocurrency, spil it provides more security value to the network.
Proof-of-Work is Significant For Bitcoin
Earlier this year, ter a response to JPMorgan CEO Jamie Dimon’s baseless condemnation on bitcoin, security accomplished John McAfee stated on CNBC’s Rapid Money that bitcoin is a better store of value and a currency than all fiat currencies including the US dollar, because of its decentralized nature and the resources required to generate or produce fresh bitcoins.
“It costs $1000 to mine 1 bitcoin. What does it cost to print US dollar? which one is the fraud?,” said McAfee.
Bitcoin famously utilizes the proof-of-work (PoW) overeenstemming protocol to confirm transactions on its network and produce fresh bitcoins until the Bitcoin network’s 21 million supply limit is met. PoW overeenstemming protocol is a crucial facet of bitcoin because it provides more security value to the bitcoin network and the currency itself.
While the authorities behind centralized monetary systems and currencies like the US dollar can opaquely manipulate the supplies of currencies through inflation, the production of bitcoin is downright see-through and mathematical. For this precise reason, Apple co-founder Steve Wozniak explained bitcoin is a better store of value than both gold and reserve currencies such spil the USD.
“There is a certain finite amount of bitcoin that can everzwijn exist. Gold gets mined and mined and mined. Maybe there’s a finite amount of gold te the world, but Bitcoin is even more mathematical and regulated and nobody can switch mathematics,” said Wozniak at the Money2020 conference.
The transparency and security value of the Bitcoin network that permitted the network to evolve into a sturdy store of value played a critical role te leading the adoption of major multi-billion dollar hedge funds, investment firms, and investment banks this year, spil more financial institutions have begun to acknowledge and adopt bitcoin spil a safe toevluchthaven asset and a currency.
For Bitcoin, Switch From PoW to Proof-of-Stake is Not Necessary
Very regarded security and bitcoin pro Andreas Antonopoulos addressed the criticism against bitcoin’s massive consumption of electro-stimulation on November Nineteen, ter a response to a statement made by cryptocurrency podcast Epicenter host Brian Fabian Crain.
Crain claimed that the removal of the PoW overeenstemming protocol is “urgent,” given that the tens unit consumption of bitcoin has surpassed that of many countries. “Getting rid of Proof-of-Work is urgent: If Bitcoin wasgoed a country, it would have 65th highest ter global energy consumption. 1 single transaction consumes spil much energy spil 9.6 US households for an entire day,” said Crain.
Ter response, Antonopoulos noted:
“Um no. Immutability is not a waste of energy. Christmas lights are a waste of energy.”
For other public blockchain networks like Ethereum that request significant amount of gegevens to be processed vanaf 2nd to support large-scale decentralized applications, the migration from PoW to proof-of-stake is unavoidable and necessary. But, for networks like bitcoin that solely operate spil sturdy stores of value, a switch of overeenstemming protocol from PoW to PoS is simply not needed.