Do you know that Bitcoin mining uses around 128.77 terawatt hours (TWh) per year? And is it likely to fall unless the currency’s value collapses? Mining for cryptocurrency consumes an enormous amount of electricity on heavy computers and machines and has devastating effects worldwide.
Mining is the process of verifying transactions on the blockchain without relying on a central authority. Mining computers thrive on solving complex problems, and these calculations require an enormous amount of energy. There is a reward with newly mined coins and Transaction fees As soon as bitcoin miners solve this problem.
Bitcoin currently accounts for 0.59% of total global energy consumption, according to Cambridge University. Digiconomist estimates that the network’s energy consumption will reach 82,026, which, according to the location, is comparable to Chile’s energy consumption. Since the beginning of 2020, Bitcoin energy consumption has increased by up to 80% in an immense development of digital currencies.
Let us provide a deep insight into the enormous energy consumption and its negative impact on environmental sustainability.
Massive power consumption
Cambridge University suggested that bitcoin mining was using more electricity compared to electricity usage in Argentina. According to online tools, the energy consumption of bitcoin electricity is higher than that of Argentina ie 121 TWh, the United Arab Emirates, the Netherlands ie 108.8 TWh and is currently creeping all the way to Norway ie 122.20 TWh.
Specialized computers are connected to cryptocurrency networks to mine mine. Their main job is to verify transactions that send or receive bitcoins. This process involves solving complex problems and is an obstacle to ensuring the fight against fraudulent activity. In addition, critics claim that Tesla’s decision to invest a large amount in Bitcoin. This week the currency’s value hit $ 48,000. According to Tesla’s announcement, he has raised Bitcoin to $ 1.5 billion and plans to accept it as a payment method in the coming years.
According to the third global crypto asset benchmark study, 28% of total energy consumption in crypto mining comes from renewable resources. People often develop a connection with large numbers of miners on the network for immense profits. This uses an unexpected amount of electricity as computers work more or less continuously to solve puzzles. It is possible to estimate how much electricity is being used at the same time by taking into account the energy demand for the Bitcoin network and the average price of electricity per kilowatt hour ($ 0.05).
What do bitcoin mining experts have to say?
Let’s take a deep dive into what bitcoin mining experts are saying about the alarming energy consumption of bitcoin mining, which is currently skyrocketing.
# 1 Dan hero
Kraken crypto exchange growth leader Dan Held announces that the Bitcoin network has been wrongly targeted by those who claim that Bitcoin is irrationally taking its energy usage.
Dan hero explained The:
“What really matters when people argue that they don’t like Bitcoin’s energy usage is that they don’t really like Bitcoin. People who do not advocate cryptocurrencies assume that bitcoin mining energy consumption is wasteful. “
Dan Held emphasizes the fact that everything in this world requires energy consumption and, with technological advancement, the amount of energy required to operate it technology faces immense growth in the near future. Almost all things in our life use energy. The claim that one source of energy is less wasteful than another is absolutely subjective, as all uses have paid market prices for the use of that energy.
# 2 Thillainathan
Thillainathan told business insiders that as the Bitcoin network grows and the profitability of mining increases at the same time, more energy needs to be used. As a mine operator, he affirms that minors should be aware of environmental issues during the mining process, as energy consumption can be detrimental. He believes bitcoin mining will be beneficial as bitcoin prices rise in the market and more miners should consider using renewable energy sources in this impending revolution.
He claimed in front of insiders that:
“Since we firmly believe in Bitcoin, it is an efficient way to store wealth. However, as an infrastructure provider, it is imperative that we become as environmentally friendly as possible.”
Thillainathan stated that the energy consumed during mining is referred to as “dirty energy” and unfortunately the energy is not sustainable in the longer term. He admits that one day the government will crack down on the use of coal-fired power plants.
# 3 Mason Jappa
Blockchain Solutions CEO Mason Jappa, who also works as the operator of some of the largest mining equipment in the US, affirms that Bitcoin miners receive financial incentives to run on the cheapest possible electricity, which often leads to the conclusion that they are consuming Energy that would have become useless.
Mason Jappa tweeted The,
“Bitcoin mining improves energy efficiency while lowering kWh energy costs for the population through austerity agreements, which will stop energy consumption during peak hours, seek renewable energy, improve energy technology and reduce natural gas flaring. ”
Jappa claims that US mechanisms are powered by a process known as “gas flare recapturing”. When natural gas is broken down, a piece of gas is flamed in the air. Bitcoin miners are preventing this from getting into the air and capturing this torch for energy use.
The impact on the environment flourishes in parallel with the emergence and awareness of Bitcoin. There is no doubt that crypto mining requires a tremendous amount of energy. According to the latest data analysis of Bitcoin Energy Consumption (CNBC) in Cambridge, that energy consumption could alarm Treasury Secretary Janet Yellen.
“It is the most incompetent way to conduct transactions and the energy consumption during the mining process is staggering.”
In addition, CAGF stated the following:
“The more machines there are in the mining industry, the greater the possibility of solving complex problems. However, more operating machines mean higher energy consumption, which raises the question of the cost of miners. ”
CCAF confirms that they do not have enough data to determine the carbon footprint of the crypto solution. Hence, the main concern is the growing energy consumption in Bitcoin mining and the associated threats to the United Nations Sustainable Development Goals in the years to come. Addressing the climate crisis is also a major concern.
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