Cryptocoins: who pays the huge energy?

[martillo]

I don't know well how cryptocoins work. It is said they spend so much energy as an entire country. The question is who pays such energy?

[Bufofrog]

25 minutes ago, martillo said:

The question is who pays such energy?

My understanding is the really large consumption of power comes from mining cryptocurrency, so the person doing the mining pays for the energy.

[martillo]

8 minutes ago, Bufofrog said:

My understanding is the really large consumption of power comes from mining cryptocurrency, so the person doing the mining pays for the energy.

It must be like that. Distributed among the users, if not it wouldn't work...

[iNow]

Not the users. The miners. And that’s just electricity bills. There are what economists call “externalities” that should be considered, too. Those are costs paid by others due to the choices of those doing the mining. 

[martillo]

9 minutes ago, iNow said:

Not the users. The miners. And that’s just electricity bills. There are what economists call “externalities” that should be considered, too. Those are costs paid by others due to the choices of those doing the mining. 

But who are the miners then? How they get the money to pay the energy?

Edited May 15, 2021 by martillo

[dimreepr]

16 minutes ago, martillo said:

How they get the money to pay the energy?

By convincing other's, that it's worth it...

[martillo]

10 minutes ago, dimreepr said:

By convincing other's, that it's worth it...

But so huge amount of energy couldn't be concentrated in some few servers, I think. The energy spended by the users would be taken into account and be a large part of the total energy calculation, or not?

The question would be then how the total consumed energy is calculated to state that cryptocoins consume as much energy as an entire country...

Edited May 15, 2021 by martillo

[dimreepr]

1 minute ago, martillo said:

But so huge amount of energy couldn't be concentrated in some few servers, I think. The energy spended by the users would be taken into account and be a large part of the total energy calculation, or not?

It's just a guess, no-one can know what will be valuable tomorrow... 😉 

[Prometheus]

Cryptocurrency is not beholden to national boundaries: it can be mined anywhere. Iceland has seen a huge influx of server farms making use of their hydrothermal power supply to produce coin relatively green and cheap.

[martillo]

8 minutes ago, Prometheus said:

Cryptocurrency is not beholden to national boundaries: it can be mined anywhere. Iceland has seen a huge influx of server farms making use of their hydrothermal power supply to produce coin relatively green and cheap.

Servers farms for cryptocoins? Lot of money involved then...

Edited May 15, 2021 by martillo

[joigus]

1 hour ago, martillo said:

I don't know well how cryptocoins work. It is said they spend so much energy as an entire country. The question is who pays such energy?

I think this is an interesting question. Energy is scarce (or world population puts enormous pressure on any level of energy availability at current time). Introduction of technologies that enormously increase demand of energy create inflation by way of increasing price of scarce resource. Inflationary movements can be seen as resulting in all people in need of energy (everybody) ending up paying a much higher bill for same amount of real resource. Inflation hides this effect of paying more by distributing load on whole populations, rather than reflecting its effects on an individual-by-individual way.

[martillo]

9 minutes ago, joigus said:

I think this is an interesting question. Energy is scarce (or world population puts enormous pressure on any level of energy availability at current time). Introduction of technologies that enormously increase demand of energy create inflation by way of increasing price of scarce resource. Inflationary movements can be seen as resulting in all people in need of energy (everybody) ending up paying a much higher bill for same amount of real resource. Inflation hides this effect of paying more by distributing load on whole populations, rather than reflecting its effects on an individual-by-individual way.

Yes, the costs could be hiding and they would be not neglihible, the energy of an entire country! And there's the contribution to the global worming too. All that energy is dissipated someway...

Edited May 15, 2021 by martillo

[dimreepr]

7 minutes ago, martillo said:

Yes, the costs could be hiding and they would be not neglihible, the energy of an entire country!

The energy, depends on cost; and not just here and now...

Free energy always comes at a cost... 😉

Edited May 15, 2021 by dimreepr

[martillo]

3 minutes ago, dimreepr said:

Free energy always comes at a cost... 😉

Sure, nothing free at the end...

Edited May 15, 2021 by martillo

[dimreepr]

Just now, martillo said:

Sure, nothing free at the end.

So, what value do we put on now?

[martillo]

Just now, dimreepr said:

So, what value do we put on now?

Personally I don't use cryptocoins but the international market and economy, who knows?

[dimreepr]

Just now, martillo said:

Personally I don't use cryptocoins but the international market and economy, who knows?

Personally, I use money to buy some food and a little whisky...

[martillo]

8 minutes ago, dimreepr said:

Personally, I use money to buy some food and a little whisky...

You see, each one can put own values on different things. But there are social averages for more global valuing. I don't think cryptocoins is a bad idea, I think is a good one, but it could bring costs and they don't seem neglihible. Seems like a bubble now, may be it falls in some amount later but I think it came to stay.

Edited May 15, 2021 by martillo

[dimreepr]

1 minute ago, martillo said:

You see, each one puts own values on different things. But there are social averages for more global valuing. I don't think cryptocoins is a bad idea, I think is a good one, but it could bring costs and they don't seem neglihible. Seems like a bubble now, may be it falls in some amount later but I think it came to stay.

Nothing comes to stay, in a bubble... 

If you're hungry enough; you will eat my shit...

[iNow]

1 hour ago, martillo said:

But who are the miners then? How they get the money to pay the energy?

You’re basically asking me how people earn money to pay their bills. You need to ask better questions. 

[martillo]

4 minutes ago, dimreepr said:

If you're hungry enough; you will eat my shit...

Sure not. Surelly I would prefer dying...

Edited May 15, 2021 by martillo

[dimreepr]

Just now, martillo said:

Sure not. Sure I would prefer dying...

I'm guessing you've never been hungry enough... 😉

[martillo]

12 minutes ago, iNow said:

You’re basically asking me how people earn money to pay their bills. You need to ask better questions. 

As I commented It's a matter of market and economy, I know, but as joigus commented those bills could affect otherones' bills, may be everyones' bills. For me is just curiosity now to know who really consumes all that amount of energy as an entire country...

Edited May 15, 2021 by martillo

[dimreepr]

1 minute ago, martillo said:

As I commented It's a matter of market and economy, I know, but as joigus commented those bills could affect otherones, may be everyone. For me is just curiosity now to know who really consumes all that amount of energy as an entire country...

Knowledge doesn't equal understanding...

[martillo]

12 minutes ago, dimreepr said:

Knowledge doesn't equal understanding...

I want both... 😄