Here’s Why Bitcoin Uses So Much Power... And Why It’s Not a Problem

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. Here’s Why Bitcoin Uses So Much Power… And Why It’s Not a Problem By Nomi Prins, Editor, Inside Wall Street with Nomi Prins If Bitcoin were a country, it would be the 24th-largest country by power consumption. That would put it ahead of Poland – a country with 40 million people. Here’s what this means… The Bitcoin network consumes an enormous amount of electricity. For example, Bitcoin’s estimated power consumption soared from an annual rate of 6.6 terawatt-hours at the start of 2017 to 150 terawatt-hours in early 2022. That’s more than a 2,000% increase. Of course, this staggering growth triggered headlines in the mainstream media about how Bitcoin wastes energy and harms the environment. If you follow Bitcoin, you have certainly heard these claims. So today, I want to take a moment to address Bitcoin’s “energy problem”… and show you why there’s more to this issue than meets the eye. Recommended Link [Market Wizard who made $95 million for his clients in 2008 – and predicted the 2022 collapse back in January – reveals his strategy:]( [image]( The One-Ticker Retirement Plan How to make all the money you need – in any market – using a single stock. [Click here for the name of the ticker…]( -- A Feature, Not a Bug In 2020, Stone Ridge Holdings announced it had bought over $115 million worth of Bitcoin as part of its cash reserve strategy. Stone Ridge Holdings is an asset manager with over $10 billion under management. In a letter to shareholders, the company addressed Bitcoin’s energy consumption: Bitcoin is a better technology for performing central banking than the current government monopolies on central banking. In the same way that cars consume far more energy than the bikes and horses they replaced, and electric lights replaced candles, and central heating replaced chimneys, and computers replaced typewriters, Bitcoin’s better monetary system consumes far more energy than the current central banking system. In other words, the amount of energy Bitcoin consumes is a feature, not a bug. And that feature represents the security of the network. Remember, the Bitcoin blockchain is simply a public database of transactions distributed across thousands of computers worldwide. About every 10 minutes, Bitcoin miners add a new block – or set of transactions – to the existing database (blockchain). Miners play a crucial role in the Bitcoin network. First, they constantly validate the entire transaction history. Second, they verify that new transactions are legitimate and follow the Bitcoin protocol. [Featured: “You can follow the money… all the investors are smelling it.” - Nomi Prins]( Before a Bitcoin miner can submit a new block to the network, they must compete to solve complex math problems. The first one to solve the math problem earns the reward – which is approximately seven Bitcoin (worth around $140,000 as of writing). Then, the process starts again. But solving the problem requires an enormous and increasing amount of computer hardware, processing power, and electricity. It may all seem unnecessary at first, as the math problems are unrelated to the transactions. But it’s a crucial part of ensuring the Bitcoin network is secure and self-sufficient. Miners must incur actual costs – expensive computer hardware, electricity, etc. – to solve difficult math problems and submit a new block to the network. If the block they submit doesn’t follow the Bitcoin protocol or is otherwise invalid, the network will reject it, and the miner will not earn the transaction fees and block subsidy. Recommended Link [New Battery Tech to “Eat Lithium’s Lunch”?]( [image]( The lithium-ion battery transformed Tesla from the laughingstock of the auto industry into the biggest car company in history. But according to Bloomberg… [This new battery technology “could eat lithium’s lunch.”]( Because it can store energy up to 94% cheaper than a Tesla lithium-ion battery. It’s a “totally new approach to battery technology,” says the U.S. Department of Energy. Powermag calls it a “trillion-dollar holy grail.” And that’s just the beginning… Because according to Forbes, a $130 trillion energy revolution is coming. To get in on the ground floor of this opportunity… Former Goldman Sachs executive Nomi Prins is recommending [this tiny $4 company]( that’s backed by billionaires Bill Gates, Jack Ma, Richard Branson, Michael Bloomberg, & Jeff Bezos. [Click here for the full story.]( -- Now, the genius of Bitcoin is that it is hard and expensive for miners to submit a new block… But it’s easy, cheap, and fast for the network to verify whether that block is legitimate or not. This means that if a miner ever tried to stray from the Bitcoin protocol or include invalid transactions in the block, it would be very expensive for them to do so. They would need to use an enormous amount of electricity and processing power to solve the math problem in the first place. In other words, it would be nearly impossible. And that’s why Bitcoin’s energy usage is a feature, not a bug. [Featured: Wall Street “loser” becomes the trader for the Top 1%.]( Simply put, the more energy that’s required for miners to solve the math problems, the more difficult it becomes to attack the Bitcoin network, and the more secure it becomes. Bitcoin’s energy consumption is not only worth it, but there is arguably no better use of energy. Here’s why… Recommended Link Top Expert on Seeking Alpha reveals: [The SWAN Retirement Blueprint]( [image]( How to make all the money you need for a comfortable retirement – in any market – with a small portfolio of unique stocks. [Click here for details – including the name and ticker of his #1 stock.]( -- The Energy Buyer of Last Resort When it comes to a Bitcoin miner’s profitability, the most important factor is electricity costs. Some estimates put electricity costs at over 90% of a miner’s operating costs. So only miners with reliable access to the cheapest electricity in the world can mine Bitcoin profitably. You can think of Bitcoin mining as the “energy buyer of last resort,” a guaranteed buyer of cheap energy. That’s the reason why renewables and energy that usually gets wasted have come to power a large portion of Bitcoin. Tomorrow, I’ll do a deep dive on three such types of energy – including some unlikely sources that most people don’t think about. And, whether you’re new to Bitcoin or a long-time buyer, I’ll show you what this means for your money. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG Last Friday, in the [mailbag edition]( Nomi responded to a reader question about whether the Fed should exist or should be modified. And today, another reader has something to say about what the Fed is doing to the middle class… Powell and his board are destroying the middle of the middle class in the United States, with their loose and irresponsible talk about their monetary policy goals. Like in former years, jawboning does not help much. The Fed should just DO what it feels is necessary and stop pouring verbal gasoline on the fires. Nobody knows why they forgot to take their foot slowly and sensibly off the peddle several months ago, as they were advised by some experienced people. – Ulrich P. Do you agree that the Fed’s policies are damaging “the middle of the middle class”? Do you think that the Fed should be modified? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Here’s Why Bitcoin Uses So Much Power… And Why It’s Not a Problem). IN CASE YOU MISSED IT… [Son of Farmer Turned Millionaire Reveals His #1 Retirement Stock (Free)]( Instead of getting caught up buying overpriced tech stocks for devastating negative returns... I’ve joined the ranks of the top 1% of wealthy Americans... by [IGNORING 99% of the entire stock market.]( I only trade ONE stock, helping me nail OVER 800 winning trade recommendations! [I’ve used it through the crashes of 2000, 2008, 2020, and 2022 to deliver gains like 373%]( and more – time and time again. I don’t care whether you have $100 in your bank account or $1 million – this single stock has the power to create your dream financial life. I’ll demonstrate HOW to trade it & reveal the ticker symbol and name of the stock, FREE. 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