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Is Bitcoin Mining an environmental disaster?


Nov 02, 2017 Posted /  4519 Views


Is Bitcoin Mining an environmental disaster?

The concept that the energy being consumed to mine Bitcoins is such that it is, well, to say the least, going to lead to consumption of essential resources and thus might lead to climate change. It looks a little bit distressed this story about how Bitcoin mining is in fact a real world environmental disaster.

What do the Figures say:

Blockchain.info, a site that tracks data on Bitcoin mining, evaluated that in 24 hours, miners used about $147,000 of electricity just to run their hardware, presuming an average price of 15 cents per kilowatt hour. Of course, that is in addition to the money devoted to buying and building the mining rigs. The site estimates the profits from the day of mining at about $681,000, based on the current value of Bitcoins. So mining, at least for the moment, is a profitable business. The compromise here is that as virtual value is created, the real-world value is used up.

How will it hamper Bitcoin?

If the dreams of Bitcoin buffs are accomplished, and the currency is adopted for prevalent commerce, the power demands of bitcoin mines would surge significantly. The amount of energy presently used is insignificant. And Bitcoin mining will simply stop as there are no more to be mined, at some point. Like any kind of digital file, a bitcoin is simply a string of data, and each bitcoin has a unique code element to set it apart from all the other bitcoins. To produce a new bitcoin, high-performance computers work to solve intensive math equations. When a user or a group of users pooling their computing power and resources solves such an equation, he, she or they are presented with a shiny new bitcoin. As more and more bitcoins are mined, the actual process of mining becomes more difficult and processor exhausting. In spite of the increasing level of processor power involved in making new bitcoins, bitcoin mining is still a process that requires only computing power to create new currency units. But all that computing power takes energy, which is the primary point of the Bloomberg report.

There may be plenty of valid reasons to demoralize the utilization of bitcoins and bitcoin mining but bitcoins’ environmental impact isn’t one of them.


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Tags: blockchain bitcoin Bitcoin Mining hamper Bitcoin mine Bitcoins

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