In a new blog post published on Medium, Kraken’s director of business development, Dan Held, lays out a thesis for Bitcoin as a “super commodity”.
The crypto exchange exec debunks the notion that Bitcoin’s use of energy is “wasteful” and argues that the cryptocurrency’s energy intensive proof-of-work (PoW) mechanism, which relies on cheap electricity to power its network of transactions, is part of a global cycle that has linked everything to energy and the consumption of energy.
“All things in our lives are closely linked to the price of energy. Purifying water requires energy. Transporting products requires energy. Manufacturing products requires energy. Cooking requires energy. Refrigerators and freezers require energy. In a free market, the cost of any good largely reflects the energy used in producing that good. Because free markets encourage the lowest priced goods, the energy used in producing any good is minimized. Money, which is the representation of the work required to generate goods and services, can also be viewed as stored energy.” Read More...