06.12.2021

Psychologist Jordan Peterson Explains Why Bitcoin’s Network Needs So Much Electricity

Renowned Canadian psychologist Jordan Peterson has launched a podcast titled Bitcoin: The Future of Money?” In it, Peterson took part in a discussion about cryptocurrency together with the guests. They are cryptocurrency lover John Wallis, developer Der Gigi, director Richard James, and former hedge fund manager Robert Breedlove.

The psychologist made several interesting assumptions about the crypt and supported the vector of its development.

Here’s a quote from Peterson in which he shared his views on Bitcoin. The replica is provided by Cointelegraph.

It’s a very interesting idea that to some extent Bitcoin gives us an unshakable language of value that is better than gold.

Recall that BTC really has a number of undeniable advantages over gold. In particular, its maximum supply is known in advance – and it cannot be changed. In addition, approximately every four years – or 210 thousand blocks – the rate of issue of the first cryptocurrency becomes two times lower. Finally, cryptocurrency is easy to send to a person elsewhere in the world and very easy to “transport” with you.

Here’s the podcast itself. We recommend that you familiarize yourself if you understand English well by ear.

The psychologist is aware of the benefits of cryptocurrency and briefly lists them at the beginning of the podcast. Here they are.

This means Bitcoin is completely transparent. It is distributed, it has no central governing body. It cannot be hacked, stolen, or more coins released. Bitcoin cannot be completely banned.

Indeed, the Bitcoin blockchain – like many other cryptocurrencies – is completely transparent. This means that anyone can view the contents of any cryptocurrency address or track any transaction. Against the background of closed banks, this feature really seems to be an undeniable advantage.

Jordan Peterson psychologist

Psychologist Jordan Peterson

It is worth noting that Peterson himself began accepting donations in bitcoins since 2018, that is, he does not belong to the crypto industry with a negative attitude. In addition, he has previously discussed the prospects and importance of blockchain. Here’s an example of his quote about technology from an interview with Grant Blaisdell in 2020.

This new system solves a whole bunch of problems, but you can be absolutely sure that it will create new problems in the future.

Most likely, it was about problems for various officials and centralized financial platforms that are able to replace the blockchain.

During the discussion, guests of the Peterson podcast concluded that criticism of Bitcoin due to its high energy consumption was not well founded. That is, all the electricity that is now spent on maintaining the cryptocurrency network is worth it, since Bitcoin will have a huge impact on the transformation of society during its decentralization. Here is the analyst’s verdict.

Any energy expended on mining bitcoins and maintaining the system should more than be recouped by increasing the efficiency of every other system that uses bitcoin as a platform for value transfer. In this way, the overall utility of the Bitcoin network can be calculated, rather than just taking into account energy costs. It would be a mistake to only consider costs without considering the potential benefits of a cryptocurrency.

Tesla Elon Musk

Earlier, concerns about Bitcoin’s “too much” energy consumption led to the cancellation of BTC as a means of payment for Tesla’s electric cars.

In other words, BTC is well worth every kilowatt of miners’ accounts – in the future, the main cryptocurrency will bring huge benefits to society and transform global finance into a more democratic system.

By the way, speaking of mining – the field of mining cryptocurrency is experiencing a local rise and “comes to its senses” after the prohibitions of the Chinese government, where a lot of mining companies were previously concentrated. Yesterday, the BTC network saw the second increase in mining difficulty in a row. It rose 7.31 percent .

bitcoin blockchain difficulty cryptocurrency

Bitcoin mining difficulty changes

This suggests that miners who were previously forced to leave China are now finding new regions for their activities. The increase in complexity directly follows from the growth of the hash rate, that is, every day the Bitcoin network becomes more and more protected from potential attacks.

In addition, the overall decentralization of mining power across the world has increased, with China’s share of the BTC mining industry declining by about 46 percent over the past few months.

We believe that in the near future all these factors will positively affect the price of BTC, thanks to which the cryptocurrency will again be able to set a new historical maximum of the rate. At least now, this scenario seems logical. Nevertheless, the market has gone through a stage of correction, the negative criticism of BTC due to its energy consumption has become part of history, and the role of China in the life of the first coin has diminished. So now there is much more positive in the niche than it was in recent months after the grandiose market crash in May.

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