Re:A Bitcoin Mining Operation Started a Secret Power Plant, ...
by BLKNSLVR on Thursday October 07, 2021 @01:48AM
(#28782574)
Bitcoin is only 13 years old, and is still a very unproven technology to the eyes of the many. However, the "value" being provided by this (admittedly large amount of) power is in the securing of a global, decentralized payment system. That's what it's designed to do.
Beyond that, no, there's no _additional_ value.
If you can start from the position of assuming Bitcoin is a thing worth existing (which may be asking a lot, but bear with me), then this security, and the power usage that enables it, is a required element of the overall thing.
ie. if it's worth Bitcoin existing, then it's worth the power usage to secure it so it can continue existing.
Having said all of that, and I've said this before, I think Bitcoin's Proof-of-Work as security is what will bring it down in the long term. Ethereum, the next biggest cryptocurrency, is moving (glacially, but right now we're the closest we've ever been...) towards Proof-of-Stake, which radically sheds a massive percentage of the power requirements to secure the network. There are other potential drawbacks to PoS, but that's a whole separate loaded discussion that I'm not across well enough to engage in.
I believe Bitcoin will have to move to some less power intensive security method in the not-too-distant future in order to remain viable. This has been accelerated by the fact that COVID is messing with supply chains and semi-conductor availability, meaning the value of Bitcoin mining equipment is increasing (from a supply / demand standpoint if nothing else).
Beyond that, no, there's no _additional_ value.
If you can start from the position of assuming Bitcoin is a thing worth existing (which may be asking a lot, but bear with me), then this security, and the power usage that enables it, is a required element of the overall thing.
ie. if it's worth Bitcoin existing, then it's worth the power usage to secure it so it can continue existing.
Having said all of that, and I've said this before, I think Bitcoin's Proof-of-Work as security is what will bring it down in the long term. Ethereum, the next biggest cryptocurrency, is moving (glacially, but right now we're the closest we've ever been...) towards Proof-of-Stake, which radically sheds a massive percentage of the power requirements to secure the network. There are other potential drawbacks to PoS, but that's a whole separate loaded discussion that I'm not across well enough to engage in.
I believe Bitcoin will have to move to some less power intensive security method in the not-too-distant future in order to remain viable. This has been accelerated by the fact that COVID is messing with supply chains and semi-conductor availability, meaning the value of Bitcoin mining equipment is increasing (from a supply / demand standpoint if nothing else).