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SBF
@SBF_FTX
1) Ok, so how much CO2 does BTC actually create? How much of a worry is it?
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SBF
@SBF_FTX
1) So on energy usage of BTC: The profile will change long-term. Right now the main driver is from block rewards. But as block rewards exponentially decay, those will become less relevant. Long-term, there are really two core drivers.
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SBF
@SBF_FTX
3) Ok, so. Let's say you spend $X on BTC/ETH blockchain fees (or any PoW currency). Those $X are going to miners in a bidding war for block slots. In an efficient market, as long as it's profitable to run a BTC/ETH mining rig, more people will open them up.
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SBF
@SBF_FTX
4) So in equilibrium, it should be a bit above breakeven: if they're paid $X, they must have < $X of total expenses. So gas fees ~ 1.5 * mining costs. mining costs are 1/2 electricity 1/2 machines, which take electricity. So 3/4 * mining costs ~ $ spent on electricity.
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SBF
@SBF_FTX
5) Something like 1/3 of mining rigs run on renewable electricity, so dirty electricity ~ 2/3 * $ spent on electricity. Electricity that miners use costs ~$0.05 / kWh. Each kWh of dirty electricity produces about 0.0004 tons of CO2.
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