Lower Carbon currency

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Many have critiqued Bitcoin and crypto currencies as wasting energy and therefore damaging to the environment. In order to assess the impact of Bitcoin and SolarCoin a model of their energy & resource consumption and impact is suggested below. The following approach was used to build the model. Google Doc spreadsheet version


  1. The blockchain reward in $'s can be used to measure the maximum rational amount an individual or group would spend to receive the reward.
  2. The resources used to "mine" crypto currencies are the computing power used to calculate hashes.
  3. Cryptographic hash calculations use electricity and physical computer chips.
  4. In order to simplify the analysis, we will assume the cost of the physical computer chips involves energy for all aspects of production.
  5. As another simplifying assumption all energy will be considered electrically generated using a single Fossil Fuel Source at an average cost.
  6. Transaction rewards which will vary in the future are assumed to be marginally economically beneficial to a degree which means their resource intensity are "justified" as a means of payment. These transactions costs are assumed to compete effectively if not more efficiently than standard payment networks used today such as (VISA/MasterCard/CHIPs/SWIFT) and others.


Expansion of the model's assumptions and competing models for Carbon intensity of CryptoCurrencies are welcomed.
SolarCoin is believed to be 50 times more energy efficient than Bitcoin by its design rapid mining reward decay rate.

Model proposition and key assumptions

Bitcoin Marginal utility model of exergy expenditure
SolarCoin Marginal utility model of exergy expenditure

Mining variables

Energy/carbon variables



Mining variables

Energy/carbon variables


blocks/hour 6
Cost of KWh $0.18


blocks/hour 60
Cost of KWh $0.18

blocks/day 144
Cost of MWh $180.00


blocks/day 1440
Cost of MWh $180.00

blocks/year 52,596
CO^2 Ton/MWh 1.5


blocks/year 525,960
CO^2 Ton/MWh 1.5

Decay rate 50% /4 yrs

$20.00


Decay rate 50%/yr

$20.00
















reward BTC mined Average BTC Value Miner's marginal utility MWh Energy Carbon Tons

reward SLR mined Average SLR est. Value Miner's marginal utility MWh Energy Carbon Tons
2009 BTC 50 BTC 2,629,800 $- $0 - -
2014 SLR 100 SLR 52,596,000 $0.01 $525,960 2,922 4,383
2010 BTC 50 BTC 2,629,800 $0.06 $165,735 921 1,381
2015 SLR 50 SLR 26,298,000 $0.25 $6,574,500 36,525 54,788
2011 BTC 50 BTC 2,629,800 $6.05 $15,910,887 88,394 132,591
2016 SLR 25 SLR 13,149,000 $2.00 $26,298,000 146,100 219,150
2012 BTC 50 BTC 2,629,800 $8.45 $22,211,133 123,395 185,093
2017 SLR 13 SLR 6,574,500 $7.00 $46,021,500 255,675 383,513
2013 BTC 25 BTC 1,314,900 $181.93 $239,215,243 1,328,974 1,993,460
2018 SLR 6 SLR 3,287,250 $10.00 $32,872,500 182,625 273,938
2014 BTC 25 BTC 1,314,900 $800.00 $1,051,920,000 5,844,000 8,766,000
2019 SLR 3 SLR 1,643,625 $20.00 $32,872,500 182,625 273,938
2015 BTC 25 BTC 1,314,900 $800.00 $1,051,920,000 5,844,000 8,766,000
2020 SLR 2 SLR 821,813 $20.00 $16,436,250 91,313 136,969
2016 BTC 25 BTC 1,314,900 $800.00 $1,051,920,000 5,844,000 8,766,000
2021 SLR 1 SLR 410,906 $20.00 $8,218,125 45,656 68,484
2017 BTC 13 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2022 SLR 0 SLR 205,453 $20.00 $4,109,063 22,828 34,242
2018 BTC 13 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2023 SLR 0 SLR 102,727 $20.00 $2,054,531 11,414 17,121
2019 BTC 13 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2024 SLR 0 SLR 51,363 $20.00 $1,027,266 5,707 8,561
2020 BTC 13 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2025 SLR 0 SLR 25,682 $20.00 $513,633 2,854 4,280
2021 BTC 6 BTC 328,725 $800.00 $262,980,000 1,461,000 2,191,500
2026 SLR 0 SLR 12,841 $20.00 $256,816 1,427 2,140
2022 BTC 6 BTC 328,725 $800.00 $262,980,000 1,461,000 2,191,500
2027 SLR 0 SLR 6,420 $20.00 $128,408 713 1,070
2023 BTC 6 BTC 328,725 $800.00 $262,980,000 1,461,000 2,191,500
2028 SLR 0 SLR 3,210 $20.00 $64,204 357 535
2024 BTC 6 BTC 328,725 $800.00 $262,980,000 1,461,000 2,191,500
2029 SLR 0 SLR 1,605 $20.00 $32,102 178 268
2025 BTC 3 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2030 SLR 0 SLR 803 $20.00 $16,051 89 134
2026 BTC 3 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2031 SLR 0 SLR 401 $20.00 $8,026 45 67
2027 BTC 3 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2032 SLR 0 SLR 201 $20.00 $4,013 22 33
2028 BTC 3 BTC 657,450 $800.00 $525,960,000 2,922,000 4,383,000
2033 SLR 0 SLR 100 $20.00 $2,006 11 17
2029 BTC 2 BTC 328,830 $800.00 $263,064,154 1,461,468 2,192,201
2034 SLR 0 SLR 50 $20.00 $1,003 6 8
2030 BTC 1 BTC 164,415 $800.00 $131,532,077 730,734 1,096,101
2035 SLR 0 SLR 25 $20.00 $502 3 4
2031 BTC 0 BTC 82,208 $800.00 $65,766,038 365,367 548,050
2036 SLR 0 SLR 13 $20.00 $251 1 2
2032 BTC 0 BTC 41,104 $800.00 $32,883,019 182,683 274,025
2037 SLR 0 SLR 6 $20.00 $125 1 1
2033 BTC 0 BTC 20,552 $800.00 $16,441,510 91,342 137,013
2038 SLR 0 SLR 3 $20.00 $63 0 1
2034 BTC 0 BTC 10,276 $800.00 $8,220,755 45,671 68,506
2039 SLR 0 SLR 2 $20.00 $31 0 0
2035 BTC 0 BTC 5,138 $800.00 $4,110,377 22,835 34,253
2040 SLR 0 SLR 1 $20.00 $16 0 0
2036*


$9,214,880,929 51,193,783 76,790,674
2040*


$178,037,444 989,097 1,483,645
*After 2036 the BTC Mining reward is marginal.






*After 2040 the SLR Mining reward is marginal.





**Transaction fees should be modeled for accuracy. It is assumed BTC transaction rewards will be equivalant to marginal utility of maintaining the transactional utility of the Bitcoin network less the mining reward
**Transaction fees should be modeled for accuracy. It is assumed SLR transaction rewards will be equivalant to marginal utility of maintaining the transactional utility of the SolarCoin network less the mining reward
















Data sources: for putting in your own assumptions













Historical BTC Prices from Blockchain.info













Electricity cost from around the World













Carbon per MWh of generation