Thread by @saifedean

Bitcoin consumes so much energy because it uses a fully mechanical & digital process to ascertain truth. It doesn't rely on the authority of anyone.

It isn't a more energy-intensive way of doing consumer payments; it's a less energy-intensive way of achieving consensus than war.

All attempts to compare bitcoin energy consumption with banks, consumer payment technologies, central banks, or gold completely miss the point of bitcoin's real opportunity cost. Bitcoin doesn't replace these & they can, in principle, coexist with bitcoin.

Bitcoin replaces the need for strangers to have to be subject to the same government & central bank in order to trade internationally, which necessitates one government imposing its will on the rest of the world, which can only be done with war.

Under the gold standard, it was the Bank of England that provided the global payment settlement platform. Under fiat, it's the Fed. By printing the global trade token, these countries had the exorbitant privilege of buying & invading the planet and footing it with the bill.

Every other form of money, physical, governmental, or digital, is a shitcoin because it relies ultimately on the authority of someone to move. Everyone wants to be that someone & the stakes are so high, they'll fight for it.

War is the only working alternative to bitcoin.

We can keep using barbaric manual shitcoins that rely on the authority of violence, causing endless conflict & politics.

Or we could upgrade to a peaceful software solution that runs on electricity and cannot be corrupted by politics or violence.

That's why bitcoin is worth it

Other costs bitcoin allows us to avoid:

-At least 10% of global wealth destroyed every year by inflation
-Monetary policy creating business cycles destroying enormous amounts of capital
-Infinite wasteful government spending

Measure that energy waste!