Recently, I came across some data that really shocked me. A few years ago, a study by Cambridge University showed that Bitcoin mining's electricity consumption had already reached 134.89 terawatt-hours. If we consider the mining industry as a country, its energy usage would rank in the top 30 globally, equivalent to Malaysia's entire annual electricity consumption. What's behind this, and why is it so important to understand?

In simple terms, mining is using computer computing power to obtain Bitcoin. But why does it consume so much electricity? In the early days, Satoshi Nakamoto mined 50 coins with a home computer, which didn't use much power. The problem is, as more people join in, the mining difficulty increases exponentially. This relates to Bitcoin's issuance mechanism—its total supply is capped at 21 million coins, and every 210k blocks, the reward is halved.

To put it simply, initially, one computer could mine one coin in a day; later, two computers could do it in two days; then four computers in four days. The difficulty doubles, and so does the electricity needed. This process will continue until around 2140 when all coins are mined. After just 13 years, so much electricity has been consumed, and the future market is essentially a bottomless pit.

Therefore, mining farms must keep upgrading their equipment to stay competitive, constantly purchasing faster computing devices. A single mining machine consumes about 35 kilowatts, and with cooling fans, power supplies, and other accessories, a mining farm's daily electricity consumption is enough for an average person to use in a lifetime.

So, is the Bitcoin mined with such effort and electricity really worth that much? I find this question quite interesting. Bitcoin was born during the 2008 financial crisis, when the Federal Reserve was printing大量美元, and Satoshi Nakamoto wanted to challenge the dollar hegemony with digital currency. In the early days, few knew about it; it circulated only among programmers, and some even exchanged 1,000 Bitcoins for two pizzas.

Later, under the admiration of tech enthusiasts, Bitcoin gradually gained traction, and its price started to soar. By 2020, when the Fed again flooded the market with money, the total issuance that year accounted for 21% of all dollars in circulation, and Bitcoin reached a peak of around $68,000. But this was completely opposite to Satoshi's original intention.

From a labor value perspective, Bitcoin actually has no intrinsic value. Humanity didn't need it at first; it's not a necessity. The mining process can't be measured by labor input either. Bitcoin has always been outside the commodity circulation system, and its current high price is essentially a bubble created by speculation.

If we insist it has value, it’s because of its decentralization, anonymity, and difficulty of loss. But once it reverts to a currency function, it faces being squeezed out by mainstream currencies. So, its greatest value might just be the wasted electricity and mining hardware costs.

Speaking of which, I have to mention why China is cracking down on Bitcoin. First, the energy consumption issue. Mining will only consume more and more electricity. If it becomes widespread domestically, it will squeeze out electricity supply for other industries, affecting economic development. In fact, a few years ago, nearly 70% of global Bitcoin mining farms were in China. Miners would buy cheap hydroelectric power in Yunnan, Guizhou, and Sichuan during the flood season, then switch to Inner Mongolia and Xinjiang for thermal power during dry seasons. Some predict that by 2024, Bitcoin mining in China will consume electricity equivalent to three Gorges Dam annually. Fortunately, after government crackdowns, many mining operations have gradually exited.

Second, Bitcoin's anonymity has become a natural shield for money laundering, drug trafficking, and scams. To combat black markets, the first step is to cut off Bitcoin's dissemination chain.

Most importantly, we must defend monetary sovereignty. Bitcoin's volatility is enough to threaten a country's financial stability. In September 2021, El Salvador made Bitcoin legal tender, but when the bear market hit this year, they suffered losses of over $210k, and it might become the first country to go bankrupt due to crypto speculation.

Ultimately, trading cryptocurrencies is no different from gambling; it erodes people's spirit and consumes the nation's hardworking virtues. The country's firm stance against Bitcoin is undoubtedly a wise decision.