Re:Cambridge Bitcoin Electricity Consumption Index
by 3np on Wednesday February 10, 2021 @10:59AM
(#26090897)
It's misrepresentative to represent it just in quantities of number of on-chain transactions.
First, let's look at the actual transacted value: last 24h ~90 billion USD.
Then, consider the narrative of Bitcoin as a store of value - the value of Bitcoin depends on the security of the network, so this needs to be taken into consideration as well.
One estimate of the current market cap of Bitcoin is ~800 billion USD.
Then you also have all the things relying on and extending Bitcoin, without each unit of added value resulting in individual on-chain transactions. Take Lightning Network, for example. Uncountable (literally) number of transactions all enabled by the base layer of the Bitcoin blockchain, protected by its proof of work. It's only the entry- and exit-points that result in on-chain transactions.
Then there is also something untangible; the things bitcoin enables. Can you put a number in watts on how much is reasonable for the unknown number of individuals who have been able to remit money to their families that they otherwise would not have been able to? Those locked out of the global financial ecosystem just because they were born or are living in the "wrong" country?
If you personally find that those dimensions makes it more reasonable or not is up to you, but let's at least try to get a reasonable narrative.
First, let's look at the actual transacted value: last 24h ~90 billion USD.
Then, consider the narrative of Bitcoin as a store of value - the value of Bitcoin depends on the security of the network, so this needs to be taken into consideration as well.
One estimate of the current market cap of Bitcoin is ~800 billion USD.
Then you also have all the things relying on and extending Bitcoin, without each unit of added value resulting in individual on-chain transactions. Take Lightning Network, for example. Uncountable (literally) number of transactions all enabled by the base layer of the Bitcoin blockchain, protected by its proof of work. It's only the entry- and exit-points that result in on-chain transactions.
Then there is also something untangible; the things bitcoin enables. Can you put a number in watts on how much is reasonable for the unknown number of individuals who have been able to remit money to their families that they otherwise would not have been able to? Those locked out of the global financial ecosystem just because they were born or are living in the "wrong" country?
If you personally find that those dimensions makes it more reasonable or not is up to you, but let's at least try to get a reasonable narrative.