Revisiting Bitcoin's Energy 'Issue' vs. ESG Investment Mandates


The previous point about transaction validation is important because it's tempting to equate the energy density of Bitcoin transactions with something like Visa(V). Bitcoin can only handle 7 transactions per second compared to Visa's more than XNUMX. But remember, Bitcoin does not use energy to validate transactions. The miners' job is to secure the network, add new blocks of data to the chain, and earn bitcoins in return. That's why they spend energy. They are not primarily interested in validating transactions. This agreement on the true state of the network is primarily the work of non-mining Bitcoin full nodes. Besides this, Bitcoin transactions are not the same as Visa transactions or other payment processors. Bitcoin transactions offer finality (probability), unlike Visa. The success of Visa depends on the success of different systems. Visa's "token" is not native to your network.