The technology behind the Bitcoin has attracted a lot of attention for it’s usability and effectiveness as a currency and a store of value. However, the recent innovations in Bitcoin technology are also making this virtual currency a valuable commodity.
Let’s take a look at the actual efficiency of the Bitcoin and Power Consumption. What it’s actually used for? To be honest I think we can all agree that it’s more of a Ponzi Scheme than a real thing.
So how can we compare Power Consumption to the efficiency of the system itself? It makes sense to compare the relative costs of the power required to run the physical infrastructure of the virtual world.
So let’s take a look at how the energy consumption is calculated. By analyzing how many people are online, how many transactions are being processed, how many accounts are accessed and how many accounts are sold per second.
It’s important to make a distinction between the Power Consumption of the physical Bitcoin infrastructure as well as the use of the power required to store all of the Bitcoins on the blockchain. Now, if we were using the same amount of energy as is being used to power the physical Bitcoin Infrastructure then it would actually cost a lot less to pay that power bill. But we’re not, so we’re losing money.
With Bitcoin being the fastest growing currency in the history of mankind, Energy Consumption should be a concern for those of us investing in the market. However, we have made it easy for the companies to get into the system and convert this simple dollar amount into something else which is of little value. It’s only when we approach the mining of the Bitcoin as being a currency investment that we begin to see that this is a minefield.
In summary, the Bitcoin will never be worth a penny, but we’re only beginning to understand what its real valueis. But I think we can agree that those who have invested in Bitcoin are sure to lose. I hope you’re smart enough to protect your money with something that’s more valuable than paper and metal.
Energy Consumption is the best way to judge the efficiency of the network. We need to learn about the electricity consumption and how much it costs to maintain this infrastructure. With this information, we can have a realistic idea of how efficient this particular technology is.