Letter from Congressmen on Bitcoin Arouses Jesse Powell’s Fury (Kraken’s CEO) Community Responds to Unsubstantiated Criticism About Effects of Bitcoin, Monero and Other Proof-of-Work Cryptocurrencies. An open letter with 23 signatures from members of the United States Congress was addressed to the Environmental Protection Agency, calling for serious investigations into bitcoin mining in the country. The letter claims that cryptocurrencies are “poisoning our communities” and cryptocurrencies like Bitcoin, Monero and Zcash should move from “inefficient” mining via Proof-of-Work (Pow – Proof-of-Work) to “Proof-of-Stake”, which would consume 99.99% less energy.
Jesse Powell Destroys Congressmen
Jesse Powell, CEO of Kraken The accusations seem to make some sense, however, as Jesse Powell (CEO of Kraken) shows they are wrong. “If you think we’re using more energy than we should, let’s have this discussion. What are we going to cut? Do we order what is new or what is most useless to society? How about wars, TV? The 2021 cryptocurrency tax records alone used one billion ziggawatts and killed 99 rainforests. /vent”- tweeted Powell. For Jesse, “human flourishing depends on abundant energy. At least Bitcoin is trying to restart the industry by subsidizing clean/renewables.” He goes further and attacks the incompetence of US politicians, who to this day continue to allow the purchase of Russian, Venezuelan and Iranian energy while trying in any way to close nuclear plants and other energy sources. “And politicians better start building nuclear power. You clowns can’t even avoid buying energy from your enemies. Where is our home energy?”
Bitcoin and energy, a zero-sum game?
Bitcoin’s high energy use does not mean that it necessarily has negative effects, quite the contrary, people only buy bitcoin because they find it useful and positive for their lives. “As a society, we are at an unprecedented level of idiocy. We attack the good and huge improvements over the status quo because it’s not perfect. Strangely, we never look back and question why the status quo should be defended so vigorously. PoS vs PoW is apples and oranges. Fiat is murder.” In this sense, he explains that “the game [entre PoS e PoW] it is not zero sum. Energy is fungible. Some things cost more energy because they are better. My laptop sucks more power than my calculator for a reason. Both are good and can coexist. They are not interchangeable.” The idea of a “zero-sum game” assumes that for someone to win something, someone else has to lose. In economics, economic relationships are generally not a zero-sum game and generate benefits for everyone involved in the transaction. For example, a farmer plants bananas, harvests and sells them. The consumer pays for the product (banana), while the farmer receives the money. Both parties are happier with the transaction and have won. The same is true with the use of cryptocurrencies, miners deliver secure transactions, out of reach of bureaucrats and the consumer receives these amounts by indirectly paying the subsidy fee and a transaction. Everyone comes out better in the end. And externalities, the result of hardware and energy consumption, are actually productive factors. They encourage the adoption of more sustainable energy and more efficient hardware. The chart below shows the ratio of Joules per Terahash of different companies producing machines to mine BTC.
Source: Bitmex Some of the above companies have already ventured into the artificial intelligence chip market due to their know-how to produce extremely efficient machines with large workloads due to bitcoin mining. Is that you? What do you think about this discussion related to the energy consumption of cryptocurrencies? Leave your comment and share this article. NovaDAX is full of news! One of the largest cryptocurrency exchanges in Brazil has now ZERO withdrawal fees in real! NovaDAX also counts zero fees for Bitcoin transactions and more than 110 listed currencies, with cash withdrawal available and high liquidity. Cryptocurrencies with the best rates on the market! Simply activate the free Novawards program and enjoy reduced rates of up to 75%. Discover the NovaDAX Card and order yours now.