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Pomp says bitcoiners shouldn’t apologise for using energy

Pomp says bitcoiners shouldn't apologise for using energy
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Pompliano told CNBC in an interview that Bitcoin’s use of energy continues to become more and more efficient as it scales up and as miners take advantage of more renewables.

Pomp Investments founder and popular Bitcoin podcast host Anthony “Pomp” Pompliano says that the conversation about Bitcoin’s energy use and how efficient it is, largely suffers from “two key points” that people tend to overlook.

He said this during an interview with CNBC’s “Squawk Box,” where he briefly highlighted issues of Bitcoin’s volatility and energy use.

Show host Joe Kernin told that as people continue to discuss Bitcoin’s energy consumption, they should note the following:

Bitcoin becomes more energy efficient as its size increases

According to him, the first is “the linear relationship between energy consumption and the US dollar system”. He goes on to explain why it is important for the conversation to take note of this point.

In order to support more users and more transactions, we need to consume more power. We need more data centers, more bank branches, more ATMs, etc,” he added.

On the other hand, he demonstrated that the Bitcoin blockchain does not have the same kind of linear relationship seen between the currency ecosystem and energy consumption. He pointed out that no matter how many transactions are added to a block during transaction processing, the amount of energy consumed is the same.

As its size increases, Bitcoin becomes more efficient because you can accumulate more economic value in each of these blocks, while in the legacy system you need to consume more energy with expansion.. “

“The important things in the world consume energy”

Pomp also says that there is nothing to apologize for when it comes to the issue of Bitcoin power consumption. From his point of view,Important things in the world use energy

He points to the increasing use of renewable energy in bitcoin mining, saying the shift to all-new greener energy sources is driving research and development in the renewable energy industry.

Before delving into the question of supply power usage, Pompliano first talked about one important metric – Bitcoin’s volatility.

He noted that the BTC price has seen a 50%+ drop in 2020 and has seen more than six corrections of 20% this year. There have also been significant price jumps, but he believes that the best way to look at the volatility is in the value of the US dollar as Bitcoin price action is determined.

He explains that if you think about it this way, the US dollar is also “highly volatile.”

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