Bill Gates is targeting Bitcoin for the accessive use of Planet Energy for validation of its transactions.
In a live-streamed Clubhouse session, Bill Gates, the Microsoft co-founder and chair of the investment fund Breakthrough Energy Ventures, said the Bitcoin is swallowing planet energy due to the highest transactional consumption of energy.
“Bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great climate thing,”
In a broader perspective, Bill Gates is not issuing a false warning. Let’s see how Bitcoin cryptocurrency actually works. Bitcoin is an encrypted, public, shared form of money generated by a longer Blockchain code. Blockchain is a set of collective records, also known as ledger, store transactional records of cryptocurrency like we store in Excel spreadsheets.
The model of Bitcoin is to store transactional data on the volunteer’s computers for verification of transactions. The volunteer computer runs software to verify the transactions made by some rules which include a mutual agreement of both parties, the buyer has enough money in his Bitcoin wallet.
The volunteers are known as Miners. Miners are rewarded for their hardware and the energy consumed by the computers by kickbacks. These kickbacks are in the form of cryptocurrency.
Bitcoins don’t rely on single computer verification. If the system gets enough verified results from different Miners then the transaction joins the recent transaction of the world as “Block”.
The math required for the transaction requires so much computing power that not a single computer or group of users can validate it, which prevents the system from generating fake currency.
Bit mining requires dedicated machines.
This whole process requires dedicated hardware and consumes a lot of power. In addition, more cooling systems are required to keep the temperature of the machine low for doing complicated mathematical processes.
A huge amount of energy is wasted for a single transaction. Bill Gates’s concerns are not just for the headlines. The world is concerned about the waste of Energy. So many countries are facing an energy crisis. Our current ways of generating energy are subject to Climate Change. This currency is not good for Green Planet.