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> We already destroy the environment to extract dollars, but now with cryptocurrencies, we actually have to destroy exponentially more raw energy to fuel the mo
by milkytron 9y ago
> We already destroy the environment to extract dollars, but now with cryptocurrencies, we actually have to destroy exponentially more raw energy to fuel the monetary system itself.
What did you mean by "extract dollars"?
Also, the digital transfer of money throughout the globe and even just domestically requires a significant amount of processing (which requires raw energy) by many different entities. It makes me wonder if a transaction within a cryptocurrency payment system is actually more or less efficient, even with all of the miners.
- SapphireSun 9y agoI mean literally extracting resources: mining, logging, fishing, oil extraction. As resources become more scarce, the market system causes the price to shoot up, incentivizing the completion of the process to extinction. In the case of cryptocurrencies, it's abstracted somewhat since we use electricity, but those energy resources must come from somewhere, and right now it's not renewables for the most part. I get what you're saying, but the entire idea of bitcoin is literally an exponential ramp. Each new technology that improves speed (CPU->GPU->ASIC) will be a linear step up, but mining will get exponentially harder. There are network effects from the banking world, but I don't think they should grow even as (N^2 where everyone is connected to everyone else) as they probably use something between than and a spoke and hub model.