Bitcoin Uses Lots of Energy, And That’s Not a Bad Thing

The Biden administration is working on policy recommendations to reduce Bitcoin's energy consumption and carbon footprint, focusing on Bitcoin's distinct proof-of-work mechanism. But although this mechanism uses a lot of electricity, it is one of the features that makes Bitcoin attractive to its users: The energy required to power mining operations acts as a barrier to malfeasance. Further, Bitcoin's energy use is an expression of people’s willingness to buy what Bitcoin provides. In other words, if people are willing to pay for it—and the plants that power mining operations internalize the cost of their emissions—Bitcoin’s energy use isn't a waste at all. Read Full Article »