Bitcoin’s energy consumption? Greater than Chile, Austria and the Czech Republic
Did you know that the most famous cryptocurrency in the world, widely defined as revolutionary, is actually turning out to be an increasing threat to the planet?
As an interesting study published in Digiconomist reveals, a single Bitcoin transaction consumes as much energy as 713 thousand operations carried out on the VISA circuit.
As if that were not enough, producing a total of 36.95 million tons of CO2, the Bitcoin ecosystem has the same “carbon footprint” as New Zealand and is greater, in terms of electricity consumption, than entire countries such as Chile, Austria or the Czech Republic.
When it comes to new technologies and investments, I think it’s also essential to think in terms of environmental sustainability. That’s why I was somewhat surprised when I found out that Elon Musk decided to invest 1.5 billion dollars in Bitcoin.
How could it be that the very same Musk and Tesla, whose aim is to eliminate emissions by combustion engine vehicles, are now investing in a potential threat to the environment?
Looking at the data, with the energy used for a single Bitcoin transaction I could drive my Model S from Turin to Palermo, about 1500km.
The problem lies in the enormous computing power required to mine (create) new Bitcoins, which uses an extremely complex algorithm.
The greater the energy requirement, the greater the production of CO2: if you wish to learn more about this fascinating study, you’ll find a link to the data at the bottom of the article.
From a financial point of view, I think you’ll agree with it’s difficult to consider Bitcoin a reliable investment. Many analysts agree that Bitcoin has yet to prove that it’s a “mature” instrument.
Personally, when it comes to investing, I prefer to know exactly which decisions and actions actually create value.
As a businessman or manager, when I find myself having to solve a problem regarding production, efficiency or automation, I find it much easier to understand the value of the investment by calculating whether the cash flow generated, and its yield, are far higher than the costs it has eliminated.
By doing so, our work is much simpler and I can assure you that, in the field of thin metal processing in which we operate, this type of approach can lead to extraordinary, concrete results.
Using the right technologies, you can also reduce the consumption of raw materials in the manufacturing process of the exact same product by 20%.
That doesn’t just mean a considerable saving on raw materials during the purchase phase, you ‘ll also notice improvements in the production process, which will become more sustainable, since it will no longer be necessary to process the “excess” raw material!
That’s not all: thanks to new servo-electric technologies, processing systems consume up to 75% less than the old, outdated hydraulic systems, while production line quality control technologies reduce rejects due to non-compliance to a minimum.
Less rejects, less raw material used, less energy required. That truly is a concrete, smart way to generate value for your company and protect our planet!
In my book called “The Revolution of Efficiency“, I used numerous case studies to provide a detailed description of how a metalworking company can achieve great value from its processes and, above all, in an increasingly sustainable manner.
If you haven’t read it yet, go to Amazon and buy a copy – or request one directly from us by writing an email to the address: [email protected]
Link to the data in Digiconomist: https://bit.ly/30iGvZb
CEO – Dallan Spa