Tag Archives: bitcoin

The Coin Curse: Bitcoin, Dogecoin and Carbon

Environmentalists…fret about how much energy bitcoin uses. In a paper in Nature Communications, a group of academics…examine bitcoin’s energy use in China. They conclude that, in the absence of legal curbs, bitcoin could by 2024 become a “non-negligible” barrier to China’s efforts to decarbonize its economy.

Bitcoin’s hunger for energy stems from its design. It forgoes centralised record-keeping in favour of a “blockchain”, a transaction database that is distributed among users. The blockchain is maintained by “miners”, who validate transactions by competing to crack mathematical puzzles with solutions that are hard to find but easy to check. Each successfully mined block of transactions generates a reward, currently 6.25 bitcoins ($357,000).

The system varies the difficulty of the puzzles to ensure that one new block is created, on average, every ten minutes. High bitcoin prices make it worthwhile to spend more computing power—and therefore electricity—chasing mining rewards…

Despite the currency’s democratic ambitions, mining is concentrated among a handful of professional operators. About 70% takes place in China. Scientists have concluded that, without regulation, Chinese bitcoin mining could consume around as much energy as Italy or Saudi Arabia by 2024. Annual carbon emissions, at 130m tonnes, would approach those of Nigeria. Such numbers should be taken with a good deal of salt. Bitcoin’s energy use depends crucially on its price, which swings wildly…

But the general picture—that bitcoin is a dirty business—fits with other research. One oft-cited model, which uses publicly available blockchain data, reckons its global energy consumption is already equal to that of Kazakhstan, and that its carbon footprint matches Hong Kong’s.

Excerpts from The dirty truth: Totting up bitcoin’s environmental costs, Economist, Apr. 10, 2021

Messaging Secrecy: US Military

The United States Department of Defense and DARPA [seek to establish] a secure messaging system that can provide repudiation or deniability, perfect forward and backward secrecy, time to live/self delete for messages, one time eyes only messages, a decentralized infrastructure to be resilient to cyber-attacks, and ease of use for individuals in less than ideal situations….The messaging platform will transfer messages via a secure decentralized protocol that will be secured across multiple channels, including but not limited to: 1) Transport protocol, 2) Encryption of messages via various application protocols, 3) Customized blockchain implementation of message deconstruction and reconstruction, and decentralized ledger implementation

Excerpts from SBIR.defense business. org

Bitcoin and US Military

The global policy counsel of the Bitcoin Foundation flew to Florida to meet with officials from U.S. Special Operations Command for a daylong discussion  on the role of so-called cryptocurrencies—of which bitcoin is the best known—in illicit finance… The military’s interest in virtual currency is part of an overall effort by special operations forces to understand how their enemies finance themselves, and what intelligence special operators can glean by following the illicit money…Defense officials said ISIS is part of a global dark network on the Internet that is involved in the use of virtual currency—although ISIS itself is “principally funded through means other than virtual currency.”

The invitation-only event, called simply the “Virtual Currency Workshop,” was held at an office building in downtown Tampa near MacDill Air Force Base where Special Operations Command is based,…It was organized by a little-known but highly influential group called Business Executives for National Security, which facilitates connections between American business leaders and the U.S. military.The group’s members include a who’s who of America’s corporate and financial elite, according to its website, including Jeff Bezos of Amazon, former AIG CEO Hank Greenberg and David Koch of Koch Industries.,,,

A key question for the officers in the room: Can the U.S. military trace bitcoin? “That’s a difficult question,”…  For the Bitcoin Foundation, which represents a broad array of libertarian technologists who can be skeptical of the U.S. government, meeting face-to-face with the national security establishment carries certain risks.  “This is the first time I’ve talked in an organized way with the U.S. military,” said Jim Harper, global policy counsel of the Bitcoin Foundation. For their part, the special operations officers said it’s their job to dive into and understand new communities. ” … The military officials said they are mindful of the civil liberties concerns involved in monitoring private financial transactions on the Internet. “Anytime we come across information about a U.S. citizen, that information is to be disposed of if it is discovered,” the official said. “Our purpose is never to disrupt legitimate businesses.”

Participants in the event said they agreed to hold it under “Chatham House rules” that barred them from identifying other attendees or revealing what was said.

Excerpts, Eamon Javers , Special Ops grill bitcoin for its terror fight, CNBC, Sept. 27, 2014