The Sustainability Problem of Digital Currencies

Bitcoin is back in the spotlight these days thanks to some wild price movements and central bank meetings. The decentralized currency has recently been trading over its all-time high of $1200 on some exchanges. But the higher the price goes, the more it exacerbates bitcoin’s dark side: shocking levels of electricity consumption.

In 2015, I wrote that bitcoin had a big sustainability problem. Back then, each bitcoin transaction represented roughly enough electricity to power 1.57 American households for a day— approximately 5,000 times more energy-intensive than a credit card transaction. Since it’s been two years, it’s time for an update.

Updated calculations with optimistic assumptions show that in a best-case hypothetical, each bitcoin transaction is backed by approximately 90 percent of an American household’s daily average electricity consumption. So even though that’s still about 3,994 times as energy-intensive as a credit card transaction, things could be getting better since 2015.

Unfortunately, it’s more likely that things are getting worse. A new index has recently modeled potential energy costs per transaction as high as 94 kWh, or enough electricity to power 3.17 households for a day. To put it another way, that’s almost enough energy to fully charge the battery of a Tesla Model S P100D, the world’s quickest production car, and drive it over 300 miles.

Read more: A Single Bitcoin Transaction Takes Thousands of Times More Energy Than a Credit Card Swipe, Christopher Malmo. Thanks to Renaud d’Avout d’Auerstaedt.

The Wonders of Industry (1873-1877)

the wonders of industry

“Les merveilles de l’industrie, ou description des principales industries modernes”, Louis Figuier (1873-1877). The 4-volume book is in French, but the engravings are indeed wonderful: Part 1 (750 pages), Part 2 (736 pages), Part 3 (687 pages) & Part 4 (744 pages). A sample of the illustrations of part one and four can be found here and here. Below: salt mines in Wieliska, Poland (extra large illustration). Related: Three thousand pages of 19th century technology.