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Why Bitcoin will never be 1 Million $

My thesis is that this will not be allowed by governments around the world and they will ban bitcoin for is huge electricity demand.

To generate new Bitcoin electricity is needed in a process called mining. In the time of writing 6.75 Bitcoin are produced by this process every 10 minutes.

We start this calculation with a Bitcoin price around 10'000$. To generate a new Bitcoin somebody is willing to invest in Hardware for 500$ and buys electricity for around 9'000$ to earn 500$ per bitcoin.

In May 2020 bitcoin mining uses around 60 TWh per year. [1] Yearly world consumption in electricity was 2017 21 372 TWh [2]. So bitcoin mining uses around 0.28% world electricity.

If bitcoin has a value of 1 Million, somebody will be willing to invest in 50'000 Hardware and buy 900'000$ for electricity to earn additional 50'000$ per bitcoin.

If Bitcoin price increases 100 times, energy consumption will also multiply by 100. So we end up bitcoin using 28% of the world's electricity for producing bitcoins.

There are even people out there they tell us BTC price will go up to 10 Millions. Then Bitcoin mining would use 280% of the worlds electricity!

Every bitcoin halving of the block reward will make also this calculation half, so they may be some hope left.

[1] https://digiconomist.net/bitcoin-energy-consumption
[2] https://www.iea.org/reports/electricity-information-2019 "2017 world total final electricity consumption reached 21 372 TWh"

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Abstract

The overuse of resources of the earth will lead to massive future disturbance for mankind. To solve this problem we need a fair and rational solution. Fair use means everyone can claim the same amount of resources, over users should pay the under users.

Die Übernutzung der Ressourcen der Erde wird in Zukunft zu massiven Turbulencen für die Menschheit führen.