“Bill Gates is targeting Bitcoin to enable access to Planet Energy to validate its transactions. In the live-streamed Clubhouse meeting, Bill Gates, Microsoft co-founder and chairman of the fund for investment Breakthrough Energy Ventures, said that Bitcoin consumes the planet’s energy due to the most energy consumption through transactions.
“Bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great climate thing,”
From a larger view, Bill Gates is not giving a false warning. Let’s look at how Bitcoin cryptocurrency actually functions. Bitcoin is a public, encrypted type of money produced by a long Blockchain code. Blockchain is a collection of records that collectively, often referred to as ledgers, that store transaction records for cryptocurrency, similar to the ones we keep the data in Excel spreadsheets.
The principle behind Bitcoin is to keep information about transactions on volunteer computers to verify transactions. The computer running the volunteer’s computer has software that checks the transactions based on certain rules that include an agreement between the two parties. The buyer also has sufficient funds within the Bitcoin wallet.
They are also known as Miners. Miners get rewarded by their hardware and the energy used by computers through kickbacks. These kickbacks are in the form of cryptocurrency. Bitcoins don’t rely on single computer verification. If the system receives sufficient verified results from various Miners, the transactions will join the latest transactions in the world under “Block.”
The math needed to make the transaction is an enormous amount of computing power that not even a single computer or group of users could verify, which stops the system from creating counterfeit money. Bit mining requires dedicated machines.
The entire process is dependent on dedicated hardware, and it consumes lots of energy. Furthermore, cooling systems are needed to maintain the temperatures of the machine down for complex mathematical operations.
A significant amount of energy is lost for just one transaction. Bill Gates’s worries aren’t only for headlines. The world is worried about the depletion of energy. Many countries are experiencing an energy crisis. Our current methods of producing energy are susceptible to Climate Change. This is not a good thing for our Green Planet.