3 ms·

The point is, Bitcoin can end up saving a lot of energy, by replacing traditional banking transactions, while everyone seems to be seeing it as "wasting" energy

by salient 13y ago

The point is, Bitcoin can end up saving a lot of energy, by replacing traditional banking transactions, while everyone seems to be seeing it as "wasting" energy. Everyone sees the glass half-empty. Bitcoin only needs to be mined for another few decades, and then it won't need to be mined anymore.

implr 13y ago
Bitcoin will still need to be mined - the whole 'trust' system is built on it, just the block reward will be zero. Miners will then profit only from transaction fees, so either the fees will go up or difficulty will go down to adjust for smaller income from mining.
Smegger 13y ago
actually they will as mining is needed for transactions to be processed, but the reward of unblocking new coins will get lower to compensate the miners though transaction fees will be paid.
zwily 13y ago
Bitcoin mining is how the blockchain is built. If everyone stopped mining, there would be no new transactions.
nilkn 13y ago
The actual purpose of mining is to extend the blockchain. It just currently has the incentive-producing side-effect of creating bitcoins. In the end, mining will be funded through transaction fees.
dllthomas 13y ago
Others have addressed a point on which you're mistaken, but it could still be that bitcoin proves cheaper. My concern about bitcoin winding up more expensive is that it's a bit of a red queen's race. Unlike most applications of encryption, attackers and defenders are on even footing (except, like in most human spheres, in that defenders hopefully outnumber any coordinated group of attackers). This means that whatever latest best tech we have for efficiently turning power into hashes, we've still got to burn about the same amount of power to keep things secure (and continually update to the next newest tech). In other spheres, technological process makes doing the same work cheaper - but in bitcoin it stays the same; you've got to run as fast as you can just to stay in the same place. It may well still be worthwhile, though.

by salient 13y ago

implr 13y ago

Bitcoin will still need to be mined - the whole 'trust' system is built on it, just the block reward will be zero. Miners will then profit only from transaction fees, so either the fees will go up or difficulty will go down to adjust for smaller income from mining.

Smegger 13y ago

actually they will as mining is needed for transactions to be processed, but the reward of unblocking new coins will get lower to compensate the miners though transaction fees will be paid.

zwily 13y ago

Bitcoin mining is how the blockchain is built. If everyone stopped mining, there would be no new transactions.

nilkn 13y ago

The actual purpose of mining is to extend the blockchain. It just currently has the incentive-producing side-effect of creating bitcoins. In the end, mining will be funded through transaction fees.

dllthomas 13y ago

Others have addressed a point on which you're mistaken, but it could still be that bitcoin proves cheaper. My concern about bitcoin winding up more expensive is that it's a bit of a red queen's race. Unlike most applications of encryption, attackers and defenders are on even footing (except, like in most human spheres, in that defenders hopefully outnumber any coordinated group of attackers). This means that whatever latest best tech we have for efficiently turning power into hashes, we've still got to burn about the same amount of power to keep things secure (and continually update to the next newest tech). In other spheres, technological process makes doing the same work cheaper - but in bitcoin it stays the same; you've got to run as fast as you can just to stay in the same place. It may well still be worthwhile, though.