HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Editorials & Other Articles (Forum) » China's Energy Shortage T...

Mon Dec 28, 2020, 10:51 PM

China's Energy Shortage Threatens Bitcoin Mining

Coal prices in China have risen over the last month as China continues to block coal carriers from entering Chinese ports—and it's causing more than just residential and industrial energy shortages and blackouts.

China's Bitcoin mining is now under siege.

China is attempting to ration its power, but bitcoin mining's unquenchable thirst for high power use is now being threatened by China's standoff with Australia, frozen wind turbines—and Russia's own short supply of coal—that has left sailors and crew stranded at sea for months.



In fact, Bitcoin miners could end up taking the brunt of the rationing, and China hosts most of the world's top bitcoin miners.

And that makes sense because Bitcoin is extremely electricity-intensive, with just a single transaction consuming the power equivalent of as much as one U.S. household does for 23 days, with the carbon footprint of about 54,563 hours of YouTube video watching.


But the bitcoin factor adds another layer of complexity into the mix, and it's garnering media attention because one bitcoin (BTC) is now worth $27,077, with a market value near $500 billion—mining is big business.

While multifaceted, the root cause of China's coal shortage is its embargo of Australian coal imports as the tension between the two nations has turned into a full-blown trade war...

https://oilprice.com/Latest-Energy-News/World-News/Chinas-Energy-Shortage-Threatens-Bitcoin-Mining.html
***************

Bitcoin, like coal mining, needs to die off

1 replies, 769 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 1 replies Author Time Post
Reply China's Energy Shortage Threatens Bitcoin Mining (Original post)
Budi Dec 2020 OP
HariSeldon Dec 2020 #1

Response to Budi (Original post)

Tue Dec 29, 2020, 09:35 AM

1. I'd like to say Bitcoin is backed by nothing

But that's not as true as I would wish: it's backed by online convenience. I will argue that "online convenience" is not as beneficial as "guaranteed as acceptable to retire debts to the government that would eventually land you in jail," (i.e. an alternative way of saying "legal tender for all debts, public and private".

I truly think that, if the Federal Reserve got its act together and provided a dollar-denominated blockchain cryptocurrency with low transaction costs, Bitcoin and all its ilk would evaporate like dew in the desert morning.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread