BILL GATES ECO-FRIENDLY BITCOINS - Bitcoins, entirely digital cryptocurrencies, have become well-known world-wide for years now. Some are in favor, some claim they are revolutionary, and some are constantly looking for defects. Among those who criticize them is Bill Gates, whose statements were shared by many people. The reasons behind this criticism are truthful and strong. However, Hamid-Reza Khoyi, auditor, proved that the issue can be solved
In a digitalised world by now, even methods of payment have become digital. This is why cryptocurrencies were invented, as digital, equal and decentralised resources based on cryptography.
Bitcoins are the first cryptocurrency by value, the first to be widely known and to be recognized as a method of payment by several websites and traders. They are not classified as coins, but as value reserve, currently very volatile. Bitcoins are not linked to a central institution and do not use sophisticated financial mechanisms. Their value is only determined by the supply and demand lever. They use a database which is distributed between that network nodes that track transactions, but takes advantage of cryptography to manage functional aspects, like the generation of new currency and the attribution of the bitcoins’ ownership.
In a world always more sensitive towards the environmental impact, Bill Gates argues that there is no space for bitcoins. In fact, he declares himself skeptical about cryptocurrencies, considering them not climate-friendly. But what are these accusations grounded on? You can tell by his own words:
“Bitcoins use more electricity for one single transaction compared to any other common method of payment”
Unfortunately, it is impossible to argue with him. In fact, Alex de Vries, data scientist of the Dutch Central Bank, estimates that each bitcoin transaction requires an average of 300 kg of carbon dioxide. This represents an impact equivalent to 750 thousand credit card payments. Therefore, data seems to support Bill Gates’ opinion.
Data is crystal clear and it is in favor of Bill Gates’ statements, and of people who agree with him. However, it is possible to make some objections.
“It is true that they have a high consumption, but several data centers and involved institutions use renewable energy. This represents a solution to the issue raised by Mr. Gates. I believe cryptocurrencies do not have to be totally rejected, what we have to work on for the future is the improvement of the technology behind them, in order to reach a lower energy expenditure”
These are Hamid-Reza Khoyi’s words, as auditor, cryptocurrencies expert and supporter of the environment. In this Forbes article you will find out that his point of view is shared by many others.