Friday, February 23

We shouldn’t apologize for bitcoin’s use of energy, says Anthony Pompliano

The program Squawk Box of CNBC this Monday (27) was attended by Anthony Pompliano, famous investor and advocate of Bitcoin. On the occasion, Pompliano commented on the price volatility and also the energy expenditure of Bitcoin.

Regarding energy, Pompliano makes a comparison between the dollar system, in which it needs to spend more energy to support more customers. In Bitcoin, this consumption is the same regardless of this number, being more efficient as it gains more adoption.

Regarding volatility, he says it is necessary to forget about Bitcoin quotation in dollars and start pricing goods and services directly in BTC, as he already does. In this way Bitcoin doesn’t seem as volatile as the dollar and other currencies do.

Bitcoin energy usage

In a conversation with Joe Kernen of CNBC, Pompliano defended the use of Bitcoin energy, saying that this is normal in other important sectors in our lives. In addition, he also compared Bitcoin’s energy expenditures against dollar expenditures.

“I think the energy argument is interesting, there are two key points that people miss in this argument. The first is that there is a linear relationship between energy consumption and the dollar system, to support more users and more transactions, we need to consume more energy, more datacenters, more bank branches, more ATMs, etc. Bitcoin blockchain, layer 1, does not have this same linear relationship, that is, regardless of the number of transactions in a block, there is the same energy expenditure. As it scales, Bitcoin becomes more efficient because you can add more economic value to each of these blocks”, afirmou Anthony Pompliano.

“The second thing is that we shouldn’t apologize for using energy, important things in the world use energy.”

Furthermore, it is also worth noting that the mining sector is always looking for alternatives that have a better relationship between energy consumption and Bitcoin generation. After all, these expenses are crucial for miners to remain competitive and profitable. Another example is a company that is using immersive refrigeration for better performance.

Anthony Pompliano talks about Bitcoin volatility

Another issue that has been talked about about Bitcoin for years is its volatility, another point that is considered by many to be the main villain of bitcoin to become a more used currency.

Pompliano also answered this question masterfully by asserting that fiat currencies, such as the dollar, also face this problem. However, as products are priced by the dollar, it appears less volatile.

“Volatility is not good or bad, volatility is only bad when the currency price falls, when it rises it is good. […] The fact is that Bitcoin, in dollar terms, has been very volatile […] The point is volatility is measured in dollars, and if you think about the dollar, it’s very volatile too, we don’t think about that, as goods and services are priced in dollars, 40% of all dollars in circulation were printed in the last few 24 months, so the dollar is losing value at an incredible rate”, affirmed Pomplianus.

“But 1 BTC is 1 BTC if you just buy things priced in Bitcoin. […] I price my entire life in BTC, when I make a purchase, I think about how much BTC I’m spending.”

Another point that we can reflect on is the infinite loss of purchasing power of fiat currencies. With governments printing money at will, it is impossible for us to have any future other than the devaluation of all these currencies. Because of this, Bitcoin is becoming such attractive money for many.