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Frederick

Global Bitcoin mining now consumes as much electricity as Nigeria!

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Morning everyone :)

Just sharing another random piece of relatable information I found in my inbox this morning. 

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Bitcoin prices are at an all-time high, but the trajectory comes with a surprising side effect: energy consumption for cryptocurrency transactions is through the roof.

As more and more miners take to their comps, they must solve “increasingly more difficult cryptographic puzzles.” 

These complex computations, in turn, take more and more energy, meaning that today, just one Bitcoin transaction now takes 215 kilowatt-hours of electricity -- enough to power the average American home for a week.

It’s all thanks to massive international mining operations

Operating overseas in countries like China, Malaysia, and Iceland, out of huge data centers filled with supercomputers. Aka energy-sucking monsters. Aka we aren’t talking Dells, people!

As a result, electricity costs comprise nearly 95% of total mining costs -- hence why the highest concentration of miners are located close to cheap hydropower (near places like Tibet).

So sure, it’s not “mining” in the traditional sense… it’s crypto-mining in, like, “the future is now” kinda sense.

And crypto sure has a carbon footprint

According to Digiconomist’s “Bitcoin Energy Consumption Index,” as Bitcoin’s energy consumption continues to rise, it’s blowing other global payment systems out of the water. 

Bitcoin mining currently takes 27 times more energy than the entire global Visa network and 3 times more energy than the next largest cryptocurrency, Ethereum -- which, unlike Bitcoin, is actually taking steps to reduce its energy-sucking mining algorithm.

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Does anyone have any ideas for solutions to this? Is a fully renewable powered mining operation feasible? Should BTC look at ways to reduce energy requirements like ETH? What do you think this means for the future of bitcoin? 

I'd love to hear your thoughts!

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Of course the energy problem need to be a priority for them, not only if we think about environment, etc.

Less energy is consume = more money the miners can make = more miners (or computers to mine at least) = faster transactions & co.

 

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