Cryptocurrencies like Bitcoin Less Wasteful Than Fiat Money

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Earlier this week, I wrote on social media that it costs significantly less energy to produce cryptocurrencies like bitcoin and Ethereum. The responses were, “that’s not true, once fiat money is created, no additional energy is required.”

Bitcoin and cryptocurrency have an energy problem?

People at the FED don’t sit around painting Benjamin Franklin all day on pieces of paper with watercolor to make $100 bills. It costs energy, electricity, & manual labor.

It costs significantly less to produce cryptocurrencies.

— Joseph Young (@iamjosephyoung) May 24, 2018

Perhaps a better way to phrase the statement was to replace energy with resources, as fiat currencies do require significantly more resources than cryptocurrencies.

Myth

Currently, the vast majority of people are comparing bitcoin’s electricity consumption to the production of paper money at central banks like the Federal…