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by iexplainbtc 1941 days ago
The environmental impact of "Proof of Work" could have been a problem but the inventors did think about that and realized that mining can be done pretty much anywhere, using renewable resources that would otherwise be untapped. As usual the ethical burden should be on the user of the tool, not the tool itself.

In the long run miners who do not use untapped (cheaper) renewables are going to be priced out, it just takes some time. That said other protocols much less computationally intensive, such as "Proof of Stake", are starting to be tested.

Anyhow, good idea NVIDIA!

2 comments

> As usual the ethical burden should be on the user of the tool, not the tool itself.

I dunno. Suppose Acme, Inc. starts selling a giant red button. When pressed, it means my boss will decide to give me the rest of the day off, no strings attached. There's a little disclaimer in the fine print that warns that whenever the button is pressed, Acme, Inc. will roll a 6-sided die. Whenever a 1 is rolled, a small child in Kenya will be executed.

Individual users of the product can claim that they aren't directly responsible for the externalities, because "I'm not the one performing the executions!" or "my dice roll was a four!".

Or, perhaps there are business users of the product, who are motivated by cost and nothing else. Good luck convincing a company that ethics are more important than its bottom line.

Sometimes users of a product are so detached from its consequences that they're willing to accept them, even if the true result is horrible. We should certainly hold companies accountable for exploiting human nature in this way.

> the inventors did think about that and realized that mining can be done pretty much anywhere, using renewable resources

So where exactly did you read that in the Bitcoin whitepaper? Because everything else is just guessing.

Here are a couple of 2010 Satoshi forum posts on the topic: https://satoshi.nakamotoinstitute.org/posts/bitcointalk/thre...
Satoshi writes:

"Gold mining is a waste, but that waste is far less than the utility of having gold available as a medium of exchange.

I think the case will be the same for Bitcoin. The utility of the exchanges made possible by Bitcoin will far exceed the cost of electricity used. Therefore, not having Bitcoin would be the net waste."

I think we're long past this point and we have better alternatives to PoW now.

Proof of work was not invented (or envisioned to be used with digital currencies) by Satoshi. It's been around since 1993. I can't really find a reference to prove what I claimed so I would agree I might have been misled to think that. But the truth is that it doesn't matter whether it was taken into account or not, what matters is that you can mine Bitcoin (or do any PoW) using untapped renewable resources (which is why big mining operations are based in places with abundant geothermal/hydropower and very little, if any, population) but you wouldn't be able to do much else in those places.