The analyst sees Canada and the United States as ideal destinations for Bitcoin mining. The researcher is convinced that cybercriminals may attack the PoS consensus mechanism of the network.
The world moves thanks to electricity and money, although the latter is fiat. Electricity is a national security issue in most countries. And so is Bitcoin (BTC) despite not belonging to any particular State.
The security of the network is more valuable than the speed of transactions as power is essential. Personalities who are unaware that most of the energy sources used by Bitcoin are renewable have questioned that.
Electrical engineer, teacher, and participant of the NGO Bitcoin Argentina, Julián Drangosch, reflected on energy and the current situation of Bitcoin. The researcher considers that many misunderstand energy consumption, which has led to criticism about the first cryptocurrency.
The Importance of Energy Use in the Bitcoin Network
One of the parameters to measure the resistance to the censorship of BTC is energy consumption. The use of that commodity allows making payments to guarantee compliance with the rules of the protocol. Cybercriminals will have to pay that same amount of energy if they want to attack the Bitcoin network.
That matches the Zahavian signals explaining that evolution leads to reliable signaling among those seeking to deceive each other. In other words, an energy expenditure not met by any company, nation, or country protects the Bitcoin network.
Other Industries Have a Higher Energy Expenditure than the Bitcoin Network
Drangosch believes that many people misunderstand energy consumption because of their lack of knowledge and misleading articles by the media. The engineer noted that all human activities require electricity, but no one judges them as harshly as they do with Bitcoin.
The engineer considers that many activities consume much more energy than Bitcoin, so no one should do them. Clothes dryers, heating and cooling, copper and aluminum mining, banks, and ATMs use more electricity than Bitcoin worldwide.
He stated that copper and aluminum are necessary for transporting electricity and the aviation industry, respectively. Furthermore, he highlighted that Bitcoin is essential as a new monetary system not regulated by any government or bank.
The Bitcoin Mining Council Noted 56% of Miners Use Sustainable Energy
Bitcoin mining has evolved through the use of CPU, GPU, FPGA, and ASIC. That has also happened regarding their energy consumption since miners initially worked with the energy available at their location.
Of course, Bitcoin mining will migrate to places with access to cheaper and more efficient renewable energy such as hydroelectric power. In addition, it will take place in jurisdictions where there may be laws and predictability in the legal status.
Canada and the United States, with 400 TWh and 285 TWh of hydroelectric power available, seem to be the ideal destinations.
The Massive Migration of Chinese Miners Will Increase the Hash Rate of Some Countries
The ban on Bitcoin mining in China has scared off some inexperienced investors since 2013. On this occasion, many facilities have closed in Sichuan and Xinjiang provinces and are moving elsewhere.
Every time an anti-fragile system receives an attack, it becomes more resistant. As Bitcoin mining leaves China, it will flourish in different countries. The most likely destinations for those facilities are Russia, the United States, Kazakhstan, and Iran.
According to Drangosch, the hash rate of the Bitcoin network will recover its value of 180 Exahashes per second. In addition, the price increase of almost 500% could lead to installing new infrastructure and increasing the network’s security.
By Alexander Salazar
