Because of its convenience and functionalities, Bitcoin has become popular over the last few years, thus making lots of people mine it as its value increases. The cryptocurrency mining industry is definitely profitable, but at what price does this really cost us? It is Electricity! Cryptocurrency mining is an energy hog, specifically Bitcoin mining.
A research by University of Cambridge reveals that Bitcoin mining consumes an estimate of 61.76 terawatt-hours (TWh) per year. That is surely a large chunk of energy consumption. It also said that it accounts for approximately 0.28% of total global electricity consumption. Relative to per country's electricity generation, Bitcoin overtakes countries such as Switzerland and Greece. Data from Cambridge Center for Alternative Finance shows that China is a main hub for Bitcoin mining. Specifically, regions in Xinjiang, Sichuan and Inner Mongolia are dominating.
How does Bitcoin consume electricity?
Bitcoins are mined by people through powerful computers. They use these gigantic computers to completely solve complex mathematical problems in exchange of Bitcoin as a reward. Such mathematical problems are solved at 10 minutes interval. When done, a new mathematical problem is generated and the cycle repeats.
Note: Regardless of the number of people actively mining, each mathematical problem is always solved every 10 minutes.
Is it worth it?
Although many miners claim that their electricity comes from renewable source, is using renewable electricity for such purposes an enough reason for Bitcoin mining to be worth it, especially that the world is in danger of global environmental catastrophe?
Is it really alright to use such large amount of energy for a volatile cryptocurrency?
Another emerging issue is the use of the Application Specific Integrated Circuit (ASIC) in Bitcoin mining. An ASIC mining device can only be used for 2 years and is intended only for mining. This only adds to the surging ecological waste that is hazardous to human and animal health.
As Bitcoin continues to boost its popularity, its energy consumption will also rise up exponentially in the coming years. We better prepare for more efficient solution to this other than the use of renewable resources. Laws related to regulation of miners and their electricity consumption must also be passed and strictly implemented, especially that many people are into Bitcoin mining nowadays.
In the coming years, as we become more reliant to the blockchain technology, we need to consider its disadvantages that is compromising the future of our world. The danger it poses must be evaluated so that we can think of ways to minimize or possibly eliminate it. By doing so, we are paving a better future for our cryptocurrency.
Source of image: forbes.com
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