Bloomberg, Reporter, Energy Consumption discussed on P&L With Pimm Fox and Lisa Abramowicz

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The visit this has become a dirty thing to produce this was a line talking about bitcoin i in an article today on the bloomberg that digs behind the scenes of behind this unbelievable rally that we have seen in the cryptocurrency this year as to how much energy it's producing and what exactly are the assets they're being used to produce that energy here to talk about that is eddie vander wal he is commodities reporter for bloomberg news coming to us from london eddie let's just start with the energy consumption of bitcoin mining there's been a lot of discussion that it is incredibly energy intensive can you explain raja that's exactly right it is it's it's very energyintensive and that's that's built into into of dna of of bitcoin really in order to follow the will in order to make the in order to me each quinn secure and in order to make it difficult to to limit supply and the creator george a person by the name of sedition okamoto an set it up in such a way that you would have to prove that you've done some work in order to uh to get a bitcoin as a as a as a result me eat modelled it a lot on on gold mining so what they use as they use a big server farms computers dot hundreds of thousands of them in in a room this sort of thing that you would see a google laura aura or a microsoft data sent use and and all of these try to solve the math mathematical problem but the thing is they all use electricity and quite a lot of it arch up they use quite a lot of electricity and they're in china chances are they're using a lotta called a generate that electricity is that the basic premise ride right that would be an easy assumption to make an end and we did when we first looked at this this this this was our starting point but of course you could in china they have a lot of hydroelectric facilities as well which is very clean very cheap once it's built an.

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