Elon Musk is definitely interested in digital currencies, but doesn’t seem to want to understand them. At least I’m afraid that you don’t have sufficient knowledge of Bitcoin (BTC) and decentralized systems in general.
A decentralized system needs to be secure, and Proof-of-Work (PoW) is the solution for Bitcoin to secure its digital asset.. The more successful Bitcoin is, the more energy the PoW needs to secure the network. In other words, heThe reason that Bitcoin uses a lot more electricity than Dogecoin (DOGE), for example, is because BTC is much more secure than DOGE.
The irony of Elon Musk
From an energetic point of view, BTC uses more energy in mining than Bitcoin. This is because Bitcoin occupies a leading position. The irony is that electricity is amorphous: amorphous in the sense that you don’t know where it’s coming from. If you just look at a kilowatt of electricity being transmitted to you, you won’t know where it’s coming from unless someone tells you. You need to trace the source of origin, sometimes the source is green and renewable, such as sun, wind, water or geothermal energy. But sometimes the electricity comes from dirty coal, nuclear and other dirty energy sources out there.
The main point is that energy is itself neutral. Energy doesn’t know where it’s coming from. Energy is just energy: electricity. Hence lThe irony is that at Elon Musk, the electric cars he sells at Tesla run on the same energy that is used in the coal-fired BTC mining machines.. It is ironic that you criticized mining machines for their high energy consumption, since Tesla cars run on a lot of energy that comes from all over the world. If you can build and sell 10 million cars, they basically use a lot of energy.
Who is right and who is wrong?
The way to really get rid of dirty energy is to turn off production at the source: the power plant. This is the only way to get rid of unsustainable energy sources. When bitcoin mining is necessary, you might think that Christmas lights are fine or that turning on the air conditioning is fine, while in reality – in my opinion – Christmas lights are really unnecessary. I can also argue that air conditioning is unnecessary too. Washing machines and dryers, on the other hand, are necessary, but if you really want to, you can wash your clothes naturally, by hand, and in the creek behind your house.
This subjective concern about what is right and wrong, or how to use one’s electricity, is reduced to society. Do we let society and the adult adults who live in it choose how to use electricity? Should there be norms, rules or even laws that regulate usage?
If washing machines or air conditioners can be used, then why can’t bitcoin mining machines be used? All of these devices waste energy, but these examples are meant to make our lives easier and better.
Be it the Paris Agreement or another important international decree, The aim should be to eliminate dirty energy at its source, in power plants, as mentioned above. To be perfectly fair, a lot of the other industries use a lot of electricity: aluminum, steel, gold, and silver mining, all of which use a lot of electricity and use a lot of energy, be it electricity or fossil fuel. Ultimately, it’s about judging which activity is good or bad. The answer here would be completely subjective: for some, mining gold or processing steel is good, while mining bitcoin is harmful to the environment.. On the contrary, I would say that mining bitcoin is good and processing gold and steel is a waste of money, energy and resources. After all, it’s subjective.
Why did Musk choose Dogecoin?
Elon Musk likes to be famous and he likes power, and many probably like it. The interesting thing is that he has no influence on Bitcoin, because Bitcoin already has many followers. In other words, couldn’t take control of Bitcoin and set the direction for the currency because BTC is too strong for that.
Let’s look at some of the most important cryptocurrencies besides Bitcoin: My brother Charlie Lee is the public face of Litecoin (LTC). Ether (ETH) has a very public founder, Vitalik Buterin. Behind Tether (USDT) is Jean-Louis Van Der Velde. Binance Coin (BNB) has Changpeng Zhao and so on, and they cannot be taken because there are remarkable people in the driver’s seats, so to speak. Finally there is Dogecoin, which was created similar to a hobby project, but then the founders of Dogecoin appear to have disappeared and DOGE was not actively maintained.
Here’s an interesting theory: Elon Musk found out about the Dogecoin tragedy and realized he could take control of the situation. Could become the new boss of Dogecoin. (That’s why I think it didn’t choose any other cryptocurrency as they had their own beloved founders and leaders.) With such a strong and famous guide for Dogecoin, the price has skyrocketed. That’s my theory, but in general I don’t like centralized digital currencies. The fact that they can take control of Dogecoin and set the address without help is a bad sign for Dogecoin. It’s not very interesting to me.
This article is from an interview with Max Yakubowski to Bobby Lee. It was compressed and edited.
This article does not provide investment advice or recommendations. All investing and trading involves risk and readers should do their own research when making a decision.
The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect the views and opinions of Cointelegraph.
Bobby Lee is the former CEO of China’s first cryptocurrency exchange, BTCC, which was founded in 2011. Lee received his bachelor’s and master’s degrees in computer science from Stanford University and began his technology career as a software engineer with Yahoo! His current company is Ballet, a hardware wallet for cryptocurrencies designed for mass access and acceptance. Lee is also Vice Chairman of the Board of the Bitcoin Foundation and brother of Litecoin founder and attorney Charlie Lee.