The Economic & Environmental Cost of Bitcoin (1 of 10) – Intro & Foreword


this video is the first in a series on
the economic and environmental cost of
Bitcoin we will be revisiting my work
from 2014 there’s a link to the report
below which had a look at the relative
sustainability of Bitcoin compared to
gold and the banking industry we won’t
be revisiting banking in this series but
we will revisit gold before we can get a
good estimate of the economic and
environmental costs sustaining the
network we need to understand several
underlying principles and concepts
namely the relationship between capital
e energies and lowercase e energy and
between “Capital B” Bitcoin and “lowercase b” bitcoin
Bitcoin macroeconomics perfect
competition and Bitcoin microeconomics
perfect competition and managerial
economics economic inputs and drivers in
the running of the Bitcoin network and
environmental inputs and drivers in the
running of the Bitcoin network we will
then demonstrate our model of
calculating the cost of a Bitcoin then
as mentioned earlier we’ll have a very
thorough look at gold vs. Bitcoin and
finish off with a bit of a discussion to
put everything into perspective if you
want to skip ahead you can read the full
report which contains all references and
links and citations I’ve included the
link to the report in the description
below it’s important to note that the
data in the report is from the end of
July 2018 and things can change very
rapidly when it comes to the hash rate
growth of the network and changes in
mining technology and hardware prices
not to mention the market price of
Bitcoin we will also be releasing cited
articles to accompany all videos in this
series so that you can follow along each
week so let’s have a look at the
relationship between Bitcoin and Energy
to understand the nature of Bitcoin and
its ties to energy spelled with a
lowercase e one needs to understand the
concept and nature of “Capital E” Energy
Energy is the prevailing force in the
universe
both father time and mother nature it
cannot be created or destroyed only
transformed from one state to the other
it is the finite but infinitely
divisible shape-shifting sole ingredient
of the universe its force cannot be
stopped only harnessed through its good
graces the Big Bang can be considered
the birth of all energy and laws of
nature whereas Bitcoin’s Big Bang was
the codified creation of 21 million
coins of which 50 were discovered in the
mining of the Genesis block since then
17 million have been discovered with the
rest to be mined in a predictable manner
over time Energy is split infinitely
into units of lowercase-e energy and mass –
calories pounds joules kilograms etc
just as Capital B Bitcoin is infinitely
split into units of lowercase b bitcoin
no mass just energy from here the link
between Energy and Bitcoin becomes
evident when looking at nature and life
and the economic evolution of humans
at the most primal level the first
instinct of life is to survive Energy is
Life and life is sustained by energy
plants get their energy from
photosynthesis predators do this by
consuming more calories than they used
to hunt their prey human civilization
has evolved to the point where we can
transform Energy into a state of power
i.e. fire steam coal nuclear
batteries you name it this has taken us
from harnessing fire to cook food
millennia ago to much more capable
energy sources now thanks to all the
energy we produce humans now expend
their calories in the pursuit of
currency and money to purchase their
food calories and other things required
for survival and to store the rest for
future use
there are huge differences between
currency and money money is finite
whereas currency is not and therefore it
can be compared to energy and retains
its stored energy over time when the
gold standard was abandoned our paper
currency became backed by nothing but
promises ever since then the value of
currency has tended to zero and money to
infinity currency violates the rules of
Energy by being created out of nothing
aside from the comparatively
Infinitesimal energy used to print out
currency and mint coins that is
disrespecting nature has led to
dangerous levels of global wealth and
income inequality and widespread social
and economic suffering no form of life
has defied energy and survived in the
long term and this has been the case for
billions of years
cryptocurrency is the Life of money of
which Bitcoin was first life literally
converting energy into money it has
evolved to keep meeting market needs and
sprout a thriving cryptocurrency
ecosystem Bitcoin was designed to last
as long as humans do wherever they are
in the universe with a communications
link obviously in the distant future if
humans have stood in the face of Energy
and not harnessed it in a clean and
renewable way they will perish therefore
as we continue to advance
technologically the Bitcoin blockchain
will be a permanent emissionless store
of monetary energy money secured and
proven to be both finite and earned
through hard work literally proof-of-work
using massive amounts of energy in
the process as always thanks for
watching and don’t forget to like this
video and subscribe to this channel for
more you can also follow us on Twitter
and LinkedIn until next time

26 thoughts on “The Economic & Environmental Cost of Bitcoin (1 of 10) – Intro & Foreword

  1. Hass, I subscribed to your channel after listening to the excellent Podcast you did with Stephan Livera. I throughly enjoyed this video & look forward to watching & learning more. Very educational, professional and well done in my opinion. I like your style. Keep them coming. Onwards & upwards.

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