- Bitcoin’s pseudonymous creator, Satoshi Nakamoto, had previously warned against the cryptocurrency’s energy consumption.
- The news came to light through a set of emails shared by Martii “Sirius” Malmi during Craig Wright’s trial.
- Nakamoto was also concerned about labeling Bitcoin as an investment as it could attract legal scrutiny from authorities.
Recent reports suggested that Satoshi Nakamoto, the pseudonymous creator of the first cryptocurrency, Bitcoin, had earlier warned against Bitcoin’s energy consumption. The reports came to light through a set of emails recently shared by Martii “Sirius” Malmi, an earlier collaborator on the Bitcoin code.
The mysterious inventor of Bitcoin still remains a question. In 2016, the Australian entrepreneur Craig Wright identified himself as Satoshi Nakamoto, claiming that he is the real owner of Bitcoin. However, a group of crypto enthusiasts, including X co-founder Jack Dorsey, defied Wright’s arguments. The Crypto Open Patent Alliance (Copa), an organization in which Dorsey is a member, sought the court’s help to dismiss Wright’s ownership claims.
While Wright is on trial, Malmi produced a batch of 2009 emails as evidence. In the email exchange, Wright stated that Bitcoin’s energy consumption is estimated to be high but less than that of the traditional finance system. He asserted, “If it does grow to consume a lot of energy, I think it will still be less wasteful than the labor- and resource-intensive traditional banking activities it replaces.” Further, he added,
The cost will be more than paying for all the bricks-and-mortar buildings, skyscrapers, and junk mail Billions in credit card offers are an order of magnitude lower in bank fees. But it would be a travesty if we ultimately had to choose between economic freedom and protection.
Colin Wu, a Chinese reporter on the Wu Blockchain X page, shared a post, drawing the readers’ attention to the new development in the long-held debate. He also shared insights on Satoshi’s concern over “labeling Bitcoin as an investment, ” which could attract legal scrutiny from authorities.
Reportedly, Bitcoin’s proof-of-work (PoW) consensus mechanism is energy-intensive. Though the consensus mechanism bolsters security, prevents double-spending, and validates transactions, its level of energy consumption is comparatively high.
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