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	<title>NO TECH MAGAZINE</title>
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		<title>The Sustainability Problem of Digital Currencies</title>
		<link>https://www.notechmagazine.com/2017/03/the-sustainability-problem-of-digital-currencies.html</link>
		
		<dc:creator><![CDATA[kris de decker]]></dc:creator>
		<pubDate>Fri, 10 Mar 2017 15:32:09 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Mining]]></category>
		<category><![CDATA[Money]]></category>
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		<guid isPermaLink="false">http://www.notechmagazine.com/?p=3612</guid>

					<description><![CDATA[Bitcoin is back in the spotlight these days thanks to some wild price movements and central bank meetings. The decentralized currency has recently been trading over its all-time high of $1200 on some exchanges. But the higher the price goes, the more it exacerbates bitcoin&#8217;s dark side: shocking levels of electricity consumption. In 2015, I [&#8230;]]]></description>
										<content:encoded><![CDATA[<p><a href="http://www.notechmagazine.com/wp-content/uploads/2017/03/bitcoin-transaction-energy-use.png"><img loading="lazy" class="aligncenter wp-image-3613 size-full" src="http://www.notechmagazine.com/wp-content/uploads/2017/03/bitcoin-transaction-energy-use.png" alt="" width="768" height="427" srcset="https://www.notechmagazine.com/wp-content/uploads/2017/03/bitcoin-transaction-energy-use.png 768w, https://www.notechmagazine.com/wp-content/uploads/2017/03/bitcoin-transaction-energy-use-500x278.png 500w" sizes="(max-width: 768px) 100vw, 768px" /></a></p>
<p>Bitcoin is back in the spotlight these days thanks to some wild price movements and central bank meetings. The decentralized currency has recently been trading over its all-time high of $1200 on some exchanges. But the higher the price goes, the more it exacerbates bitcoin&#8217;s dark side: shocking levels of electricity consumption.</p>
<p>In 2015, I wrote that bitcoin had a big sustainability problem. Back then, each bitcoin transaction represented roughly enough electricity to power 1.57 American households for a day— approximately 5,000 times more energy-intensive than a credit card transaction. Since it&#8217;s been two years, it&#8217;s time for an update.</p>
<p>Updated calculations with optimistic assumptions show that in a best-case hypothetical, each bitcoin transaction is backed by approximately 90 percent of an American household&#8217;s daily average electricity consumption. So even though that&#8217;s still about 3,994 times as energy-intensive as a credit card transaction, things could be getting better since 2015.</p>
<p>Unfortunately, it&#8217;s more likely that things are getting worse. A new index has recently modeled potential energy costs per transaction as high as 94 kWh, or enough electricity to power 3.17 households for a day. To put it another way, that&#8217;s almost enough energy to fully charge the battery of a Tesla Model S P100D, the world&#8217;s quickest production car, and drive it over 300 miles.</p>
<p>Read more: <a href="https://motherboard.vice.com/en_us/article/bitcoin-is-still-unsustainable" target="_blank">A Single Bitcoin Transaction Takes Thousands of Times More Energy Than a Credit Card Swipe</a>, Christopher Malmo. Thanks to Renaud d&#8217;Avout d&#8217;Auerstaedt.</p>
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