Jump to content

Cryptocoins: who pays the huge energy?


martillo
 Share

Recommended Posts

25 minutes ago, martillo said:

The question is who pays such energy?

My understanding is the really large consumption of power comes from mining cryptocurrency, so the person doing the mining pays for the energy.

Link to comment
Share on other sites

8 minutes ago, Bufofrog said:

My understanding is the really large consumption of power comes from mining cryptocurrency, so the person doing the mining pays for the energy.

It must be like that. Distributed among the users, if not it wouldn't work...

Link to comment
Share on other sites

Not the users. The miners. And that’s just electricity bills. There are what economists call “externalities” that should be considered, too. Those are costs paid by others due to the choices of those doing the mining. 

Link to comment
Share on other sites

9 minutes ago, iNow said:

Not the users. The miners. And that’s just electricity bills. There are what economists call “externalities” that should be considered, too. Those are costs paid by others due to the choices of those doing the mining. 

But who are the miners then? How they get the money to pay the energy?

Edited by martillo
Link to comment
Share on other sites

10 minutes ago, dimreepr said:

By convincing other's, that it's worth it...

But so huge amount of energy couldn't be concentrated in some few servers, I think. The energy spended by the users would be taken into account and be a large part of the total energy calculation, or not?

The question would be then how the total consumed energy is calculated to state that cryptocoins consume as much energy as an entire country...

Edited by martillo
Link to comment
Share on other sites

1 minute ago, martillo said:

But so huge amount of energy couldn't be concentrated in some few servers, I think. The energy spended by the users would be taken into account and be a large part of the total energy calculation, or not?

It's just a guess, no-one can know what will be valuable tomorrow... 😉 

Link to comment
Share on other sites

Cryptocurrency is not beholden to national boundaries: it can be mined anywhere. Iceland has seen a huge influx of server farms making use of their hydrothermal power supply to produce coin relatively green and cheap.

Link to comment
Share on other sites

8 minutes ago, Prometheus said:

Cryptocurrency is not beholden to national boundaries: it can be mined anywhere. Iceland has seen a huge influx of server farms making use of their hydrothermal power supply to produce coin relatively green and cheap.

Servers farms for cryptocoins? Lot of money involved then...

Edited by martillo
Link to comment
Share on other sites

1 hour ago, martillo said:

I don't know well how cryptocoins work. It is said they spend so much energy as an entire country. The question is who pays such energy?

I think this is an interesting question. Energy is scarce (or world population puts enormous pressure on any level of energy availability at current time). Introduction of technologies that enormously increase demand of energy create inflation by way of increasing price of scarce resource. Inflationary movements can be seen as resulting in all people in need of energy (everybody) ending up paying a much higher bill for same amount of real resource. Inflation hides this effect of paying more by distributing load on whole populations, rather than reflecting its effects on an individual-by-individual way.

Link to comment
Share on other sites

9 minutes ago, joigus said:

I think this is an interesting question. Energy is scarce (or world population puts enormous pressure on any level of energy availability at current time). Introduction of technologies that enormously increase demand of energy create inflation by way of increasing price of scarce resource. Inflationary movements can be seen as resulting in all people in need of energy (everybody) ending up paying a much higher bill for same amount of real resource. Inflation hides this effect of paying more by distributing load on whole populations, rather than reflecting its effects on an individual-by-individual way.

Yes, the costs could be hiding and they would be not neglihible, the energy of an entire country! And there's the contribution to the global worming too. All that energy is dissipated someway...

Edited by martillo
Link to comment
Share on other sites

7 minutes ago, martillo said:

Yes, the costs could be hiding and they would be not neglihible, the energy of an entire country!

The energy, depends on cost; and not just here and now...

Free energy always comes at a cost... 😉

Edited by dimreepr
Link to comment
Share on other sites

8 minutes ago, dimreepr said:

Personally, I use money to buy some food and a little whisky...

You see, each one can put own values on different things. But there are social averages for more global valuing. I don't think cryptocoins is a bad idea, I think is a good one, but it could bring costs and they don't seem neglihible. Seems like a bubble now, may be it falls in some amount later but I think it came to stay.

Edited by martillo
Link to comment
Share on other sites

1 minute ago, martillo said:

You see, each one puts own values on different things. But there are social averages for more global valuing. I don't think cryptocoins is a bad idea, I think is a good one, but it could bring costs and they don't seem neglihible. Seems like a bubble now, may be it falls in some amount later but I think it came to stay.

Nothing comes to stay, in a bubble... 

If you're hungry enough; you will eat my shit...

Link to comment
Share on other sites

1 hour ago, martillo said:

But who are the miners then? How they get the money to pay the energy?

You’re basically asking me how people earn money to pay their bills. You need to ask better questions. 

Link to comment
Share on other sites

12 minutes ago, iNow said:

You’re basically asking me how people earn money to pay their bills. You need to ask better questions. 

As I commented It's a matter of market and economy, I know, but as joigus commented those bills could affect otherones' bills, may be everyones' bills. For me is just curiosity now to know who really consumes all that amount of energy as an entire country...

Edited by martillo
Link to comment
Share on other sites

1 minute ago, martillo said:

As I commented It's a matter of market and economy, I know, but as joigus commented those bills could affect otherones, may be everyone. For me is just curiosity now to know who really consumes all that amount of energy as an entire country...

Knowledge doesn't equal understanding...

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.