#895 Takeaways From My Conversation With Chris Larsen, Co-Founder of Ripple
4/1/2022 · 10 min · transcript via mlx
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Key topics
— Pomp discusses his conversation with Ripple co-founder Chris Larson about the "Change the Code, Not the Climate" ESG campaign criticizing Bitcoin's proof-of-work energy consumption.
— Bitcoin mining obtains approximately 66% of energy from renewables (3x the US average), contradicting claims of excessive environmental impact.
— Bitcoin's energy consumption does not scale linearly with price; Bitcoin's price appreciated 4,300% in five years while energy use increased 10x—a fundamentally different relationship.
— The claim that Bitcoin mining will consume 4% of global energy production is mathematically implausible and would require Bitcoin to reach $2.3 million per coin.
— Larson declined to answer questions about whether Ripple or its executives funded prior proof-of-work critiques, raising concerns about transparency.
— Pomp advocates for a code fork and free-market competition rather than awareness campaigns without proposed technical solutions.
Market & price signals
— None discussed.
Actionable insights
— Bitcoin's energy efficiency relative to price appreciation is often misrepresented; miners operate at ~66% renewable energy, well above the US baseline, making the "environmental crisis" narrative misleading.
— The free market, not advocacy campaigns, will determine which consensus mechanisms and cryptocurrencies succeed; Bitcoin's dominance as the most valuable and decentralized cryptocurrency reflects this market-driven outcome.
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