Elon Musk is certainly interested in digital currency, but he doesn’t seem to want to understand it. At the very least, I’m afraid he doesn’t have a deep enough knowledge of bitcoins (BTC) and decentralized systems in general.
A decentralized system must be secure, and proof-of-work (PoW) is a solution for bitcoins to secure its digital assets. The more successful the bitcoin, the more power is needed to secure the PoW network. In other words, the reason why bitcoin consumes much more electricity than dogecoin (DOGE), for example, because BTC is much safer than DOGE.
Irony Elona Muska
From an energy point of view, BTC consumes more energy in the extraction of bitcoins. This is due to the fact that bitcoin is in a leading position. The irony is that electricity is amorphous – amorphous in the sense that you don’t know where it comes from. Just by looking at the kilowatt of electricity transmitted to you, if someone has not told you, you do not know where it comes from. You need to keep track of the source of origin, where sometimes the source is green and renewable – such as solar, wind, hydro or geothermal – but sometimes the energy is dirty coal, nuclear and other dirty energy sources that are outside.
The main question is that the energy itself is neutral. Energy does not know where it comes from. Energy is just energy – electricity. So the irony is that at Elon Musk, the electric cars he sells in Tesla are powered by the same energy used by BTC coal mining machines. It’s ironic criticizes mining machines because they consume a lot of energy, because Tesla cars are powered by a lot of energy that comes from all over the world. If you are going to build and sell 10 million cars, they will in principle use a lot of energy.
Who is right, who is wrong?
The way to really get rid of dirty energy is to stop production at the source: the power plant. That is the only way to get rid of unsustainable energy sources. If bitcoin mining is necessary, you may think that Christmas lights are fine or turning on the air conditioning is fine, when in fact Christmas lights are – in my opinion – really useless. I can also argue that air conditioning is also unnecessary. On the other hand, washers and dryers are necessary, but if you really wanted to, you can try to wash the laundry naturally, by hand and in the creek behind the house.
These subjective fears about what is right or wrong, or how one uses one’s electricity, come to society. Do we allow society and the adults living in it to choose how they want to use electricity? Should there be any standards, rules or even laws to regulate it?
If you can use washing machines or air conditioners, why can’t you use bitcoin mining machines? All of these devices are wasting energy, but these examples are designed to make our lives easier and better.
Whether it is Paris Agreement or some other important international decree, the aim must be to remove dirty energy at its source, at power plants, as mentioned earlier. To be fair, many other industries use a lot of electricity: the extraction of aluminum, steel, gold and silver – all of which consume a lot of electricity and consume a lot of energy, be it electricity or fossil fuel energy. Finally, it is an assessment of which activity is good or bad. The answer here would be entirely subjective: For some, it is good to mine gold or process steel, while bitcoin mining is destructive to the environment. On the contrary, I would argue that bitcoin mining is good and that gold and steel processing is a waste of money, energy and resources. After all, it’s subjective.
Why did Musk choose dogecoin?
Elon Musk likes being famous and loves it – a lot of people probably do. Interestingly, bitcoins do not affect him, due to the already strong bitcoin following. In other words, he couldn’t take the bitcoin and give him direction because he was already too strong for it.
Take a look at some of the best cryptocurrencies besides bitcoin: My brother, Charlie Lee, is the public face of litecoin (LTC). Ether (ETH) has a very public founder, Vitalik Buterin. Behind Tether (USDT) Yippee Jean-Louis Van Der Velde. Binance Coin (BNB) has Changpeng Zhaoetc. and cannot be taken over because there are almost important people in the driver’s seats. Finally, you have Dogecoin, which was created as a similar hobby project, but then it seemed that the founders of Dogecoin had disappeared and DOGE was not actively maintained.
Here’s an interesting theory: Elon Musk learned of the Dogecoin tragedy and realized it could be something he could take control of. He could become the new head of dogecoin. (Therefore, I think he did not choose any other cryptocurrencies because they had their own beloved founders and leaders). With such a strong and famous dogecoin leader, the price has risen sharply. That’s my theory, but in general I don’t like centralized digital currencies. The fact that you can take dogecoin and determine the direction with one hand is a bad sign for dogecoin. It’s not very interesting to me.
This article does not contain investment advice or recommendations. Every investment and business movement involves risk, and readers should conduct their own research when making decisions.
The views, ideas and opinions expressed herein are those of the authors and do not necessarily reflect the views and opinions of Cointelegraph.
Bobby Lee is a former CEO of China’s first cryptocurrency exchange, BTCC, founded in 2011. Lee earned a bachelor’s and master’s degree in computer science from Stanford University and began his technical career as a software engineer at Yahoo. His current venture is the Ballet, a hardware cryptocurrency wallet designed for access and reception by the masses. Lee is also the vice chairman of the Bitcoin Foundation and the brother of Litecoin founder and advocate Charlie Lee.