Bitcoin’s Technical Foundation and Its Potential for a Decentralized and Environmentally Friendly Future
Abstract
This research examines a systematic analysis of Bitcoin, employing a Coefficient of Variation (CV) approach to gauge its degree of decentralization. Bitcoin, an innovative decentralized digital currency, has received much attention for its potential to revolutionize traditional financial systems. This study employs the Coefficient of Variation (CV) to acquire insights into the wealth distribution and concentration among Bitcoin users. This research demonstrates how decentralized the network of Bitcoin is. The methodology uses real data on Bitcoin addresses and their holdings to compute the Coefficient of Variation (CV). This approach provides valuable insights into the ongoing discourse surrounding Bitcoin’s decentralization, offering a fresh perspective on how the fixed supply of 21 million Bitcoins may impact wealth distribution. Furthermore, the study expands its scope to examine sustainability aspects within Bitcoin mining. It investigates the scope of using renewable energy sources such as wind, hydroelectric, solar, and geothermal. This indepth exploration assesses the adaptability and potential synergies between these renewable energy sources and Bitcoin mining operations. This study examines aspects such as energy efficiency, environmental effect, and economic viability to provide a comprehensive perspective on the possibility and challenges of merging wind, hydro, solar, and geothermal resources into sustainable Bitcoin mining. The study's findings provide useful insights into Bitcoin's future and its potential impact on global financial systems and environmental sustainability. This thesis intends to use Bitcoin mining from Methane (CH4) flares to contribute to a more resilient and sustainable society while promoting positive environmental change.
Subject Area
Systems science|Economics|Sustainability
Recommended Citation
Siddique, Iqtiar Md, "Bitcoin’s Technical Foundation and Its Potential for a Decentralized and Environmentally Friendly Future" (2023). ETD Collection for University of Texas, El Paso. AAI30820491.
https://scholarworks.utep.edu/dissertations/AAI30820491