Ripple's CEO is up in arms over Bitcoin and Ethereum: here's why

Published on by Cryptoslate | Published on

One key aspect that makes Bitcoin different from fiat currencies is that it is mined; those that want to mint BTC must put computational power to work and spend electricity to do so, which comes in stark contrast to fiat money, which can be infinitely printed and without much "Work."

Although many say this is what makes this mining is what imbues Bitcoin with much of its fundamental value over fiat, an industry executive has recently come out against mining, calling it a crucial factor in the "Growing climate crisis."

Crypto mining bashed by Ripple's CEO over climate worries.

It's no secret that Bitcoin isn't the most popular asset; many economists and technologists around the world are highly skeptical of the cryptocurrency for many reasons.

Energy consumption for BTC and ETH mining is a massive waste and there's no incentive to take responsibility for the carbon footprint.

Legendary Bitcoin proponent and educator Andreas Antonopoulos wrote in 2016 that holiday lights surrounding the trees and homes of millions across the globe use "More energy in a week than [entire] small nations," before rhetorically asking "Who's wasteful?".

Not to mention, a 2019 report from crypto fund manager CoinShares found that 77.6% of all Bitcoin mining is powered by renewable energy sources, especially hydroelectricity in places like China's Sichuan region, the west coast of the U.S., and Canada.

Garlinghouse's latest critique of crypto-asset mining comes just weeks after he said that "China controls the Bitcoin blockchain," before elaborating that there are "Four miners in China that represent 60 percent or more of total mining capacity for Bitcoin, and 80 percent of the mining capacity for both Bitcoin and Ethereum is based in China."

Despite Garlinghouse's skepticism regarding Bitcoin mining, he remains a fervent believer in the godfather of cryptocurrencies, so to say.

He did throw cold water on the narrative that BTC's primary use case is to be a medium for day-to-day transactions, quipping that using Bitcoin at Starbucks will mean "By the time you get your coffee, it'll be cold" - referencing the blockchain's ten-minute block times.