A Look at the Environmental Impact of Bitcoin Mining
All around the world, Bitcoin is setting up a new economic trend with the concept of digital currency. It is shifting the world smoothly from the traditional central authority system-like banking system to a decentralized economic system. Digital currency boomed within a short period. The journey of Bitcoin started with $9000 and onward its worth is four (4) times of initial worth. These figures of worth make it an attractive asset and investment point.
A Cambridge University research paper shocks the whole world with amazing stats. This report urges them to consider thoughtfully about digital currency adoption. Research reveals that bitcoin is going to change this earth no more suitable living place. It was something that suddenly caught the attention of the people.
Energy Consumption for Bitcoin Mining
Research’s stats show that bitcoin is consuming more energy than the whole of Norway. In another conference, held under the banner of the UN, the speaker exposed that it is consuming energy equal to Switzerland or any other medium country. Another researcher said that 10 minutes of block addition consumes about 2.5 times the energy that Amazon, Apple, Microsoft, Google, and Microsoft collectively consume in a whole year.
In 2021, Bitcoin mining solely consumed about 116 TWh of electricity. It is 0.5% of the total electricity consumption. On the other hand, Bitcoin mining used only 3.68TWh electricity in 2017. It is very shocking, 30 times more consumption for same industry within only four (4) years.
How Bitcoin impacts the environment
Bitcoin is a blockchain-based digital currency that has no central authority. Instead of central controlling authority, It uses a blockchain network. Several Bitcoin miners deal with transactions and win airdrop.
When someone makes a transaction it goes to a network. To make sure the security of digital currency, proof of work is done with the transaction.,To create a hash, every minor have to solve a mathematical puzzle. in proof of work, there is a mathematical puzzle, which helps to create a 64 digit hash of this transaction. The miners have only 10 minutes to solve this puzzle. Any of the miners, who solves this puzzle, send it to other miners for approval. When he gets approval, this transaction block is added to the chain.
It was much easy to do the crypto mining with only a P.C, in 2010. Over time it gets overpopulated and complicated. The situation is scenario is completely changed. Mining machines are being used for this work. These machines are consist of a heavy computerized processing system, which ultimately requires high electricity.
This huge amount of energy generation is possible to produce by all types of energy resources. Including renewable and fossil fuels.
Various types of energy resources are being used, to meet the energy demand for mining operations. These resources are adding the carbon footprint into the natural environment and a reason for global warming. The Crypto lovers respond to the community with the argument that they are using renewable energy resources. That’s true because it largely relies upon renewable energy resources. According to a Cambridge University report, it uses only 39% of environment-friendly energy resources. The remaining 61% is only the use of fossil fuel for electricity requirements.
The burning of fossil fuels causes a rise in temperature globally. If this incredible pace of energy consumption, which is not getting slow, will be a major reason for global warming. This will be a reason for boiling the seas and ultimately the world will no more a suitable place anymore.