Bitcoin mining has recently been scrutinized. To better understand why blockchain is receiving a poor rap, we spoke with a crypto expert.
If you enjoy reading stories like these and want to support us as writers, join the community by becoming a member and you’ have unlimited access to all stories.
If you’ve even casually followed Bitcoin news lately, you may have seen headlines such as these:
“Bill Gates Sounds Alarm On Bitcoin’s Energy Consumption”
“Bitcoin’s wild ride renews worries about its massive carbon footprint“
“Why does Bitcoin need more energy than whole countries?”
These captions are intended to generate clicks and possibly sow doubt in the public’s mind regarding popular cryptocurrencies. Is crypto trading, however, the energy vampire that the media portrays it to be?
To gain a more balanced perspective on this topic, we chatted with podcast producer and blockchain specialist Matthew Diemer, a veteran player in the crypto business. Diemer is the host of The Decrypt Daily podcast, which covers a wide range of crypto-related news and information.
Popular digital currencies
Let’s take a brief look back at some basic cryptocurrency information before we get started. Hundreds of virtual currencies, also known as tokens, are already accessible for purchase and trading. However, Bitcoin, which has been operating for nearly a decade, is by far the most well-known money.
Ethereum, dogecoin, and Litecoin are some of the other crypto stars on the rise. NFTs, or “non-fungible tokens,” are a form of virtual product that lives primarily within the Ethereum blockchain, and a surge of interest in them has recently fueled public demand.
To comprehend how energy use and blockchain (the technology that allows cryptocurrencies to exist) are connected, one must first understand how cryptocurrencies are created and traded.