100X Bitcoin energy use would mean ‘absurd’ $20M BTC price — developer

According to a new source, 1 Bitcoin (BTC), to meet its 100-fold energy demand would require it to cost $20,000,000.

Sjors Provoost (a Bitcoin developer and author “Bitcoin: A Work in Progress”) questioned the future energy use of the largest cryptocurrency in a Twitter debate.

Bitcoin could survive on “wasteenergy breadcrumbs”

The question of how much energy Bitcoin needs to survive has been a source of friction that has moved from the industry to the global government.

Proponents of Bitcoin have complained throughout the process that people in power are making incorrect conclusions about why and how Bitcoin uses its energy.

Critics argue that Bitcoin should reduce its energy consumption. Others explain that Bitcoin actually uses energy that would otherwise be wasted or unavailable.

Matt Odell, a fellow developer, published a graphic that showed that Bitcoin mining uses only 0.1% of the global electricity waste and 0.4% overall.

Provoost responded that in order for energy consumption to grow proportionally to changes in the Bitcoin network’s preprogrammed changes to increase, it would need to become an “absurd $420 trillion entity.”

“In 10 years, the block subsidy (with 3 halvings) will be 10x less.” He wrote that Bitcoin must trade at $20M to achieve 100x energy consumption today (plus energy cost inflation adjustment).

“But a market cap of $420T is absurd, more so than all real estate.”

The block subsidy, which is the amount of bitcoin added to the supply for each block that has been mined, is halved every four years due to Bitcoin’s halving cycles. The mining ecosystem is competing for less BTC each time. Thanks to Bitcoin’s Proof-of-Work mining algorithm, they are incentivized not to lose more hardware.

Sjors states that more hardware equals more power. However, the smaller rewards, more efficient hardware, and greater impact of transaction fee on miner revenue should help to keep energy consumption in check.

He continued, “Alternate 12 years later, even if Bitcoin’s value is greater than all of the world’s real estate, it would not suffice for Bitcoin to consume more than 1% global energy.” He noted that his calculations had not been verified.

“So, if nothing unusual happens before 2030 it can probably continue running on waste energy breadcrumbs.”

The struggle of miners is real

Cointelegraph reports that Bitcoin miners are facing difficult times right now due to the BTC price dropping to levels that make mining profitable for some.

Related: BTC miners “finally surrender” — 5 things you need to know about Bitcoin this week

Recent evidence of this was evident as more than 14,000 BTC were left miner wallets, indicating that miners were opting to sell funds in order to remain afloat.

These “capitulations” have always been associated with macro price bottoms.

BTC/USD lost up to 74% since November 2021 when it hit an all-time high.

The Puell Multiple is a metric that compares newly-issued BTC to the 365-day moving mean. It currently stands at historical lows.

Bitcoin Puell Multiple chart. Source: LookIntoBitcoincom. You should do your research before making any investment or trading decision.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

Close Bitnami banner