|image Source Google – wired|
Bill Gates is targeting Bitcoin for the accessive use of Planet Energy for validation of its transactions.
In a live-streamed Clubhouse session, Bill Gates, Microsoft’s co-founder and chair of the Breakthrough Energy Ventures Investment Fund said Bitcoin swallows planet energy due to the highest transactional energy consumption.
“Bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great climate thing,”
In a broader perspective, Bill Gates is not giving a false warning. Let’s see how Bitcoin cryptocurrency actually works. Bitcoin is an encrypted, public, shared form of money generated by a longer Blockchain code. Blockchain is a set of collective records, also known as Ledger, which stores cryptocurrency transactional records as we do in Excel spreadsheets.
Bitcoin’s model is to store transaction data on volunteer computers for transaction verification. A volunteer computer runs software to verify transactions made under certain rules that involve mutual agreement between both parties, and the buyer has enough money in his Bitcoin wallet.
The volunteers are known as Miners. Miners are rewarded for their hardware and the energy that computers consume by kickbacks. These kickbacks are in the form of cryptocurrency.
Bitcoins don’t rely on single computer verification. If the system gets enough verified results from different Miners then the transaction joins the recent transaction of the world as “Block”.
The math required for the transaction requires so much computing power that it cannot be validated by a single computer or group of users, which prevents the system from generating fake currency.
Bit mining requires dedicated machines.
This whole process requires dedicated hardware and consumes a lot of power. In addition, more cooling systems are needed to keep the temperature of the machine low for complicated mathematical processes.
A huge amount of energy is wasted for a single transaction. Bill Gates’s concerns are not just for the headlines. The world is concerned about the waste of Energy. So many countries are facing an energy crisis. Our current ways of generating energy are subject to Climate Change. This currency is not good for Green Planet.