The Bitcoin Myth for Kids | Square Crypto Fairy Tales Series Episode 1: Bitcoin Mining

Twitter founder Jack Dorsey's payment company Square seems to be targeting a younger audience. On the 18th, it released a story series called "The Bitcoin Myth," using fairy tale characters such as a green giant, a werewolf, and a fairy to debunk some common misunderstandings about Bitcoin.

So, what interesting stories are there in the first episode "Bitcoin Mining"? Let me tell you:

Episode 1: The Green Giant

They are big, they are green, and they care a lot about where Bitcoin miners get their electricity. But Bitcoin is greener than they think.

The story explains that while many may question if Bitcoin uses environmentally friendly energy, in reality, Bitcoin miners must seek a sufficient and affordable energy source to remain competitive. As there is no energy more abundant than renewable energy or more affordable, profit-driven miners, regardless of their environmental concerns, will work to reduce Bitcoin's carbon footprint.

Episode 2: Scale-a-manders

Bitcoin cannot be scaled for mass usage.

Note: In this episode, to align with the theme of scalability, Square intentionally used "salamander" to play on the word "scale." Thus, the translation reflects this creative choice.

Square: "For Bitcoin, scaling means growing Bitcoin many times over without the need for many times more energy. The 'Scale-a-manders' are also the oldest and most widespread Bitcoin myth. Despite often conflicting claims, Bitcoin's design inherently allows for scalability in energy consumption per transaction, enabling significant scaling."

Square: "This is because Bitcoin's transaction volume is independent of energy consumption, meaning it can accommodate 100, 1,000, or even 10,000 times more transactions using the same amount of energy."

Episode 3: Werewolf Hardware

Bitcoin mining machines must work tirelessly to offset hardware costs.

Note: Werewolf, associated with hardware, hence translated as "Werewolf Hardware."

Square: "A few years ago, these once unquestioned myths may have been accurate, but today, they are not. What they overlook is the steady advancement of hardware over time, extending the lifespan of mining machines from about six months to roughly four years, with increasing efficiency."

Square: "Electricity is the most significant cost in mining. The current scenario allows miners to power down as costs rise, making the shift to renewable energy the only viable solution."

Episode 4: Ent-a-cop Tree People

Bitcoin consumes too much energy.

Square: "Some may be concerned about how much energy Bitcoin consumes, harming forests. While their concerns are noble, they are misplaced, as the issue lies with carbon dioxide, not energy consumption."

Square: "If Bitcoin consumed 100 times more energy but had zero carbon emissions, these concerns would be unfounded. Increased demand for renewable energy would lead to more investments in green technology, benefiting everyone, especially the trees."

Episode 5: Ampires Energy Vampires

Vampires? I'm not a monster.

Square: "These myths revolve around the idea that the energy used by Bitcoin should be allocated to other green applications, such as electric vehicles. While we support electric cars, people fail to realize that the renewable energy Bitcoin uses is not easily transferable to other users."

Square: "This excess energy is left unused due to the costs of transmission and storage or simply because there is no demand. If there were a demand for this type of energy, it would go to the highest bidder. In most cases, this energy is expensive, and Bitcoin miners are not the highest bidders."

Episode 6: Fiat Fairies Fiat Currency Fairy

Bitcoin consumes more energy than traditional currencies.

Square: "In reality, government-issued currencies are no different from 'promises.' They are supported by armies, police, opaque legal systems, and incomprehensible banks, printing money at will."

Square: "All of the above consume vast amounts of energy and are challenging to be green. When Bitcoin becomes the preferred global currency, it will replace these systems. Once they vanish, like little fairies, you won't see them again."

Next Episode Preview: Bitcoin and Security

It appears that Square will continue to use mythical characters to illustrate misconceptions and criticisms surrounding Bitcoin. In the next episode, the story will delve into "Bitcoin and Security."