If you are going through this post, this means you are also consuming electricity at the moment. The same story is for everyone browsing the internet, checking their email, or clicking the photos and social media. Our life has become digital, and this means we consume power now and then. Yet, we blame Bitcoin the most for consuming too much energy, more than some small nations like Norway or Sweden. Interestingly, Bitcoin has no physical existence, yet it requires too much energy for mining or creation. So, it is exciting to see the kind of energy that goes behind mining Bitcoin. As per the study conducted by Cambridge called the BTC Energy Index, the machines use more than 15 million people living in nations like the Netherlands in one year. If you want to invest in bitcoin, you can visit https://bitcoin-investor.app/ and get an edge on it.
As we see the value of Bitcoin going ahead, we see many more supporters of this coin standing in its support. Mining bitcoin has now become similar to mining gold and other precious stones. As mining gold is a costly affair, similar is the story with other metals as well. Today we see many financial systems relying on several digital platforms, and we see too many people also relying on the use of energy. Now, let us check how much power Bitcoin needs in a year. As per the said study, in 2017, Bitcoin reported the consumption of around 6.6 T of energy every year. In 2020, we saw a similar story about the same. After a month or so, we have seen things going just double, and Cambridge university-based research students have found some staggering figures. When you check the calculations, it can be whopping, though. Yet, the kind of impression we have created so far has been interesting to note.
The energy economists feel that Bitcoin has a massive consumption. With so many data centers across the world, the requirement for energy for them has gone up. You need to run the internet, the system helping people mine Bitcoin and many more. It is the reason why the Bitcoin price has soared all these years. If you compare the transaction of Bitcoin with the same amount of energy footprint, around 80K is the visa transactions that took place in 2018 alone. With one transaction taking place for Bitcoin using Blockchain, it requires around 453K of Visa transactions, claims the energy economists. Now, the big question, why Bitcoin needs so much energy. It has remained the moot question of this post. Let’s explore it as under:
We know Bitcoin to be a digital coin. It means that it works on the P2P computer network. The network remains safe, and it also uses a considerable amount of leger system known as Blockchain. It has given a pile-up of transactions that take place as a copy and paste thing for everything. As we see everything in this node remaining connected, the system comes up as a huge thing. This network allows everyone to become its part. All they need is a high-end computer with great power in it. These computing machines can sort out the problems in a big way and even manage complex mathematical issues to keep the ball rolling. Also, when such high-end machines run at a faster pace, it heats up.
Therefore, you need a proper cooling system, and thus you require too much energy for that. People dealing with these machines are the miners, and they get the reward in the form of digital currency called Bitcoin. The higher the computing power, the greater is the chance to make the system robust. The price of Bitcoin shoots up, and thus we see too much investment taking place in the technology sector. It goes on a higher note, and many more computers remain in the network to function the best. The more significant is the energy level in this network, the higher is the chance of getting Bitcoin with the mining process. All these things make the energy consumption higher. If you look at where Bitcoin miners stay the most, you will be surprised to know that. Well, China tops in the number of miners.