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> Also compare that to the multiples of power used today by gold mining, or infrastructure that Bitcoin aims to replace. Based on DoE estimates of energy cost
by teraflop 8y ago
> Also compare that to the multiples of power used today by gold mining, or infrastructure that Bitcoin aims to replace.
Based on DoE estimates of energy cost per ton of gold mined [1] and the current annual production of roughly 3000 tons/year, it looks like gold mining consumes an average of roughly 7 GW (assuming there have been no efficiency improvements since 1975).
That's roughly equal to the power consumption of all Bitcoin mining. But of course Bitcoin can't replace gold, because the majority of gold mined is used for non-monetary applications.
[1]: https://www.energy.gov/sites/prod/files/2013/11/f4/gold-silver.pdf https://www.energy.gov/sites/prod/files/2013/11/f4/gold-silv...
- roenxi 8y agoBut gold is energy un-intensive once mined. It sits there. Bitcoin needs the mining network to keep consuming energy to show it is special, otherwise it is basically just a number. Eventually bitcoin creation ceases and the energy burned will be paid in the transaction costs.
- tromp 8y agoThe comparison is quite appropriate, since the block reward that miners compete for is mostly the fixed new emission (currently 12.5 BTC), with transaction fees making up a much smaller amount. In other words, the huge energy costs of Bitcoin should be attributed more to coin distribution than to transaction processing, although this balance will tip in the coming decades.
- neuromantik8086 8y ago> But of course Bitcoin can't replace gold, because the majority of gold mined is used for non-monetary applications Building Bitcoin mining ASICs, for example...