There can be no denial that Bitcoin has changed the way our world works
Image source: Wikimedia Commons
I came across an excellent article today (during my after-office hours commute back home) that left my eyes wide open with a new revelation. I am talking about the article published on National Public Radio titled: "How The Tiny Nation Of Georgia Became A Bitcoin Behemoth" written by Andrew North. A very heartwarming article but it has helped me understand more about how Bitcoin is sustainable in the future.
In the article, it talks about Georgia, the heartland of winemaking, has changed after Bitcoin mining company, BitFury, moved into their country. We can see where this is coming from. A reasonably small country, in terms of land size, population, GDP, but a good place for tourism I would say. Tech giants move in because of the access of relatively cheap electricity for mining farms. While you may think that Georgia is getting ripped off, Georgians are actually profiting by joining the mining of cryptocurrencies. This has led to a "digital gold rush".
Since when have you ever listened to your over-controlling governmental parents especially when they say, "It's risky. Don't gamble. And be VERY careful." ? The article has definitely changed the way I look at how large corporations always seem to gain profit in a centralized manner. What I failed to look at is how large corporations tend to start an ecosystem of some kind, leading to newer opportunities that may present itself to the commoner like you and me.
Image source: Flickr - Philippe Put
Understanding Bitcoin's source of power/money
Bitcoin mining consumes large amounts of energy. In Georgia, most of its cheap electricity comes from hydroelectricity produced in excess. A renewable source of energy is also a form of free resource that once tapped on, can be very crucial in our high-tech electronics and microchip-based futures. Bitcoin mining has become some sort of an energy converter that converts energy directly into digital currency with high monetary value.
Let's take a look at other examples of how electricity is powering our economy.
- Oil/Gas --> Power plant --> Electricity for factories --> Factories sell products for profit
- Fuel --> Powers engines --> Efficient transportation network
- Sunlight --> Growing food and crops --> Farmers sell food to the people
- Hydroelectricity --> Cheap source of electricity --> Powers mining equipment --> Cryptocurrency generated
Renewable energy tapped on by cryptominers is almost equivalent to large power plant manufacturers selling off free energy. Renewable energy is a free resource. Knowing how to tap onto it and to use it means generating new revenues that contribute to the economy. Right now, blockchain-based cryptocurrency is a sure way of tapping onto such renewable energy converting them into something of monetary value.
This changes my knowledge of how Bitcoin is gaining value each day. It does not lose its value because energy is converted into something useful in the blockchain and it will continue to grow as long as the mining process continues. Finally, I can apply the law of Conservation of Energy for the first time in my life - where energy is neither created nor destroyed but converted from one form to another.
Bitcoin is our stored value and energy.
Hope this post gives you a new perspective on Bitcoin and cryptocurrencies.
-tysler
Image source: Wikimedia Commons
