Bitcoin and the law of conservation of energy

Bitcoin and the law of conservation of energy


Author Alex Miller (AlexMillar) is a blogger, he got a degree in physics engineering at the Queen’s University in Ontario province of canada.

In this article, Miller explains that “money is energy” theory. In addition, he also believes that from a purely scientific point of view, bitcoin is an alternative currency better choice.


In physics, the “energy” is defined as a measure of physical characterization system working ability.

This means that money is energy, because it can pay others to complete the work. In the energy and money, can be considered as “economic energy”. Economists say the economy energy for the “price”, and “euro” or “Kenya shilling” to measure them.

However, these units are abstract, because they will change over time. Physicists would rather choose to use the joule or kilowatt hours of such units, these in physical reality, there is a specific basis (such as quality (kg), length (m) and time (s)).

Since money is energy, we can use the law of conservation of energy, both:

“Energy cannot without generation, nor without destroying, but it can change form.”

You may remember that high school science textbooks: a toaster converts electrical energy into heat energy; a mixer converting electrical energy into mechanical energy.

A 100 dollar bill has significant economic energy. However, in the process of generation, using cheap raw materials and power not worth mentioning. The question is: the $100 economic energy come from?

The answer came from economics 101, said the price (economic energy) is the embodiment of supply and demand.

When the overall supply of goods increase, the economy will reduce per unit of energy. Therefore, stored in a new dollar bill in energy is converted from a pre-existing $(the lost a small part of the energy, and the energy) $is a zero sum game.

This also applies to the rights to prove the amount of currency (POS) (for example, plan future versions of Ethernet, and Fang) proof of work (POW) currency bitcoin.

The euro dollar, etc.

As explained above, when the government created the new dollar, these new dollars will draw the previously existing dollar energy.

The energy equation is very simple:

The amount of money that interests

Let us assume that in the future, the etheric Fang is a PoS network, Ethernet square holders will get new coins reward according to cash ratio (Note: Ethernet square PoS is not simply by increasing ratio of distribution).

In other words, all investors hold X dollars, will get the number of C X coins in the next block money reward (where C is the number of a constant). The transfer of energy from the old to the new currency, but the holder is still the same person.

No flow of energy, it is difficult to see the significance of the creation of new coins in a PoS system. It is said that the purpose of it is to find consensus on block chain growth, but it remains to be seen.

The proof of work.

Currency PoW (bitcoin) in the process of creating the consumption of large amounts of electric energy.

Bitcoin fans might think that its power consumption will be completely transformed into the new currency of economic energy. Therefore, the original currency with no loss of energy.

However, in the process of digging coins which will generate heat. If the heat generated is equivalent to the consumption of electricity, so the new currency of energy must be from the old. Fortunately, it seems to be impossible, because once the electric energy converted into heat energy, the machine will not be used.

Look, the economy energy from the energy conversion among, but also with some heat loss.


The energy stored in the $person, because economic parasite was absorb economic energy, and the energy stored in the bitcoin is not.

Bitcoin miners have found a way, the electric energy can be transformed into energy economy.

From a logical point of view, once people realize that they can be stored in purely economic energy, and will not face economic parasites shortcomings, they will put dollars into bitcoin. This will lead to energy conversion to $bitcoin.

Later, with the bitcoin total economic energy close to the dollar, it will be found that dollar economic energy will fall because of falling demand. It is like a chemical reaction, energy will be quickly transformed, and is close to complete conversion (using a “nearly complete” of the word, this is because some people will refuse to give up on the dollar trust).

Finally, from the physical perspective of the scholar, the universe is necessarily entropy will increase.

Like bitcoin PoW coin, they are only a kind of increasing entropy currency (by heat loss in mining, so from the perspective of the universe), they are only in accordance with the trend of currency.

Bitcoin investment exchange group: 221662679

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