Bitcoin has acquired an exceeding extent of recognition in the global marketplace after the recent pandemic.
Bitcoin might sound like an investment asset or trading instrument to you at the very first time, as most people are just using bitcoin units to make money out of it.
However, bitcoin is not an investment asset. Undeniably the store value of bitcoin is gigantic, and the returns are also very phenomenal.
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However, the foundation of bitcoin was as an electronic payment method.
Satoshi Nakamoto, the so-called inventor of bitcoin, underlined bitcoin as an electronic cash system with the whole flash peer-to-peer network in bitcoin’s white paper.
Satoshi Nakamoto published the white paper of bitcoin units on the bitcoin.org website, and this website is still broadcasting the official white paper of bitcoin.
Since bitcoin is a virtual token, bitcoin mining, generating new bitcoin units is also virtual.
According to recent reports, a single bitcoin transaction is generating 272 grams of e-waste.
Let’s find out whether bitcoin mining is that bad for our ecosystem or is it just a fuss.
Why is a bitcoin transaction generating 272 grams of e-waste?
You are familiar with bitcoin as a decentralized currency, and no government authorities can control bitcoin.
However, due to decentralization, there are ample chances of double-spending. Double spending is the action of sending one bitcoin unit to two different wallet addresses.
Bitcoin mining is the action that eradicates the core notion of double-spending.
Bitcoin mining validates every possible transaction of the bitcoin complex and renders it to the blockchain.
Suppose you send some bitcoin units to your friend’s wallet; bitcoin miners will verify that transaction.
Bitcoin mining is the mere reason why every bitcoin transaction produces such an amount of e-waste.
Why is Bitcoin Mining An Energy Guzzler?
Bitcoin mining is now famous as the energy guzzler as bitcoin mining action consumes a massive chunk of electricity.
Bitcoin mining consumes electricity due to excess bitcoin mining rigs and special hardware to mine bitcoin units.
Bitcoin mining is a computerized process, and you cannot mine bitcoin units with a home computer as there is very high competition in the mining industry.
Therefore, Bitcoin miners are now using application-specific integrated circuits or graphic processing units to benefit from the mining venture.
These bitcoin mining rigs consume a massive amount of electricity.
All the more profitability of bitcoin mining is very tempting due to which the competition in the mining industry is increasing day by day.
Due to high competition in the bitcoin mining industry, miners have to process their bitcoin mining rig the entire day.
According to proof of work, if a miner fails to solve the math puzzle in 10 minutes, that explicit miner has to restart the entire process.
Environmental Impacts of Bitcoin Mining!
Undeniably bitcoin mining consumes an exceeding amount of electricity.
The annual energy consumption of bitcoin mining is 130 TWH, and if China reverses the bitcoin mining ban, it might reach 300 TWh by the end of 2024.
Bitcoin mining is the action of validating bitcoin transactions, and without bitcoin mining, the network of bitcoin will survive.
However, the environmental toll of bitcoin mining is not that serious.
After mounting enormous criticism, bitcoin miners witnessed a drop in the store value of bitcoin.
To maintain their profitability in bitcoin mining actions, bitcoin miners started to use green energy.
According to a report of the bitcoin mining council, bitcoin miners are now using green energy more than any country.
Even developed countries such as the United States are using less green energy than the bitcoin mining industry.
As per the reports, half of the bitcoin mining industry has already started using green energy for bitcoin mining.
All the more recently, China announced a ban on bitcoin mining. China was the capital of bitcoin mining, and bitcoin miners from China merely utilized electricity as the energy source to mine bitcoins.
The cost of electricity in China, in contrast to other developed countries, is significantly less.
After the bitcoin mining ban in China, there was a sudden and drastic change in the electricity consumption of the global bitcoin mining ban.
The portion mentioned above is everything you should know about the electricity consumption of bitcoin mining and its environmental aspects.