Today's national currencies represent a gargantous energy-consuming machine.
Bitcoin fixes this.
How?
A national currency, such as for instance the US dollar, inflates with on average 7% (new dollars that debase the value of all of the dollars that are already in existence). This effectively cuts the value of each unit of the currency in half in 10 years.
Prices and wages don't increase nearly as much. This means that a company or a person who wants to maintain an after-tax currency reserve of equal value has to produce or work more and more over time.
This extra work requires use of enormous amounts of energy. Everything in the production line that requires energy, such as workers and machines, will have to consume much more of it.
The inflation rate of bitcoin (new bitcoin in addition to existing bitcoin) is in comparison only 1.8%. In May 2024 it falls to 1.1% and later it falls over time until it reaches 0% in 2140.
Partly because of this quality the value of bitcoin outperforms all other assets, including stocks, real estate and gold. Because the value goes up, people who save in bitcoin can work less. This means that they can consume less energy.
The amount of electrical power used to secure the Bitcoin network grows slower than the overall growth in production of electrical power.
As a result Bitcoin's share of the consumption falls over time. In 2021 researchers at the University of Cambridge estimated at 0.5%.
@LynAldenContact is considered as one of the leading macro and bitcoin market analysts. In her report "Bitcoin’s Energy Usage Isn’t a Problem. Here’s Why"
udated in January 2023, she wrote that:
"Since the world uses over 176,000 TWh of energy per year, that means that the entire Bitcoin network, at its peak consumption level, uses less than 0.1% of the world’s energy consumption."
As time goes by and bitcoin gradually replaces national currencies, our monetary system's drag on the world's energy reserves falls dramatically.
It's also every reason to believe that energy wasted on gaslighting people about Bitcoin's energy consumption will go down noticeable over the next few months.
lynalden.com/bitcoin-energy/