Elon Musk is definitely interested in digital currency, but it seems he doesn’t want to understand it. At least, I’m concerned that he doesn’t have a deep understanding of bitcoin (B T c) 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 assets. The more successful Bitcoin is, the more energy PoW requires to secure the network. In other words, this is because bitcoin uses a lot more electricity than dogecoin (Doge), for example, because BTC is much more secure than DOGE.
Elon Musk’s irony
From a power point of view, BTC uses more energy than bitcoin mining. This is due to the fact that bitcoin is in a leadership position. Ironically, electricity is amorphous – amorphous in the sense that you don’t know where it comes from. Unless someone told you, just looking at a kilowatt of electricity, you don’t know where it comes from. You have to track the origin, where sometimes the source is green and renewable – such as solar, wind, hydro or geothermal – but sometimes the energy is dirty coal, nuclear and other dirty energy supplies that are there. .
The main issue is that the energy itself is neutral. Energy does not know where it has come from. Energy is just energy – electricity. So, ironically, with Elon Musk, the electric car he sells at Tesla is powered by the same energy used in coal-fired BTC miners. the irony that He’s Criticizing Miners To use a lot of energy, because Tesla cars are powered by using a lot of energy coming from all over the world. If you get to build and sell 10 million cars, they’re going to use a lot of energy in theory.
Who’s right, who’s wrong?
The way to really get rid of dirty energy is to shut down production at the source: the power plant. This is the only way to get rid of permanent sources of energy. If bitcoin mining is necessary, you might think that Christmas lights or turning on the air conditioning are okay, while in reality, Christmas lights – in my opinion – are actually unnecessary. I could even argue that air conditioning is unnecessary as well. Washing machines and dryers, on the other hand, are essential, but if you really want to, you can try doing laundry by hand and down the drain in the back of your house.
These subjective concerns about what is right or wrong, or how one uses their electricity, permeate society. Do we allow society and the mature adults who live in it to choose how they want to use electricity? Should there be some standards, rules or even laws that would regulate this?
If you can use a washing machine or an air conditioner, why can’t you use a bitcoin mining machine? All these devices are wasting energy, but these examples are designed to make our life easier and better.
whether it is Paris Agreement Or some other important international decree, the goal should be to eliminate waste energy at its source, in power plants, as mentioned earlier. To be completely fair, many other industries use a lot of electricity: aluminum, steel, gold and silver mining – all of which take a lot of electricity and use a lot of energy, be it electricity or fossil fuel energy. In the end, it is a matter of judgment as to which activity is good or bad. The answer here will be entirely subjective: for some, it is good for gold or process steel, while bitcoin mining is destructive to the environment. On the contrary, I would argue that mining bitcoin is good, and processing gold and steel is wasting money, energy and resources. After all it is subjective.
Why did Musk choose Dogecoin?
Elon Musk loves to be famous, and he loves power – a lot of people probably do. Interestingly, because of bitcoin’s already strong following, he has little to do with bitcoin. In other words, he could not capture bitcoin and set the direction for it, as it is already too strong for him.
Let’s look at some of the top cryptocurrencies besides bitcoin: my brother, Charlie Lee, is the public face of Litecoin (LTC) ether (ETH) is a very public founder, Vitalik Buterin. behind the tether (USDT) is Jean-Louis van der Velde. currency coin (bnb) is Changpeng Zhao, so on and so forth, and they cannot be taken for granted because there are remarkable people in the driver’s seats, so to speak. Finally, you have Dogecoin, which was created similar to a hobby project, but then the founders of Dogecoin disappeared, and DOGE was not actively maintained.
Here’s an interesting theory: Elon Musk found out about the tragedy of Dogecoin and realized it might be something he could control. He could become the new head of Dogecoin. (That’s why I think he chose no other cryptocurrency, because he had his own beloved founder and leader). With such a strong, well-known leader of Dogecoin, the price skyrocketed. That’s my theory, but in general, I don’t like centralized digital currencies. The fact that you can take Dogecoin and set the direction alone is a bad sign for Dogecoin. To me, it’s not very interesting.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
The views, opinions and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Bobby Lee He is the former CEO of BTCC, the first cryptocurrency exchange in China founded in 2011. Lee received both bachelor’s and master’s degrees in computer science from Stanford University, and began his career in tech as a software engineer at Yahoo. His current venture is Ballet, a cryptocurrency hardware wallet designed for access and adoption by the masses. Lee is also the Deputy Chairman of the Board of the Bitcoin Foundation and brother of Litecoin founder and lawyer Charlie Lee.