More and more worldwide pressure towards Bitcoin seems to focus on the ecological aspect, and rightly so. Even banks, governments and the SEC can’t stop Bitcoin, but surely paying such an expensive electricity bill slows it down. If Bitcoin and the POW were more efficient its price would surely be even higher.
Perhaps this is one of the reasons why masternode technology has been developed, capable of consuming between 1000 and 1,000,000 times less than the POW used by Bitcoin and Eth with the same number of users and capital invested. French Digital Reserve seems to be at the forefront of this technology. I had fun analysing, albeit summarily, the energy consumption per dollar or BTC invested.
What is the consumption of Bitcoin?
According to an estimate by Carlos Domingo, if we restrict ourselves to the banks’ servers, their branches and ATMs, we already reach 100 TWh per year, compared to 57 TWh for Bitcoin at present. So for about 600,000,000,000 USD of market cap BTC consumes 60,000,000,000 Kwh, which amounts to $10 per each Kwh, i.e. every $10 invested consumes as much as a hair dryer used for one hour. Each BTC owned consumes 3 Megawatts of power, which is the mechanical output of a diesel locomotive that is always running. Each bitcoin transaction of 1 satoshi to 1,000,000 BTC needs about 215 kilowatt hours (kWh) of energy. Even if the more and more less consuming blockchains like Binance Smart Chain, Cardano, store pegged Bitcoin reducing drastically the consuption.
So what is the consumption of FDR per usd?
The cost of one MN is about 1 $ USD (average) per month and we assume that the whole price is used to pay the electricity bills (0.15$ per Kwh) we can estimate that each MN consumes 4 Kw per month (that’s nothing). On FDR there are about 1000 MN so 4 Mw per month for all MNs, than we can extimate 6 Mw per month the cost of the blockchain servers and all the PC linked. The FDR Market Cap is about 10.000.000 $ so that makes 1.000 $ per Kw per month.
There are 720 hours in a month so for 1,000 $ USD per kw per month we are closer to 15 w/h. The project is perfectly scalable, it means that energy consuption won’t increase with the increasing of adoption and market cap. So even if the market cap will increase as much as Bitcoin energy consuption
- 10,000 $ USD in BTC consumes 1 Mwh
- 10,000 $ USD in FDR consumes 1,5 wh
French Digital Reserve has a consuption of about 600.000 times less than Bitcoin at the same value. And FDR has having one of the best performance of all crypto universe and it seems go forward also during the bear seson, since it receive everyday buybacks from an Bep20 token ecosystem. Since Bep20 consumes much less energy than erc20, FDR migrated their previous Impulse ERC20 to a more environmemtal friendly Bep20 on the Binance Smart Chain
As Bitcoin FDR fulfils the three functions defined by Aristotle :
- a medium of exchange
- a unit of account
- a store of value
But better then Bitcoin FDR is :
- environmently sustainable, crypto investor decisions are the more and more based on environnment. It will be a market exclusion
- energy efficient, the price of energy reduce the profit, that’s a fact and math doesn’t lie.
- scalable, FDR masternodes and BSC Bep20 are a real scalable technology, without any sort of loss of efficiency with the increasing of volume.
- long term economic model based on a solid financial plan
So why don’t be rich and clean at the same time?
DISCLAIMER : This is a environment advice from environmental economics master degree, no english mother language but it is not intended as legal, financial or investment advice and should not be construed or relied on as such. No material contained within this post should be construed or relied upon as providing recommendations in relation to any legal or financial product.