Sunday, March 7, 2021
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Home Technology Crypto miners consume more electricity than entire countries

Crypto miners consume more electricity than entire countries

In the last month, not only has Bitcoin experienced an incredible rise, but there is also a huge increase in electricity consumption due to cryptocurrency mining, a process where the user devotes computing power to finding a new mathematical solution.

At a glance about the history and operation of Bitcoin. Bitcoin was not worth a cent in the beginning, while today its value is around 40,000 euros. Bitcoins and other cryptocurrencies are obtained through so-called “mining”. In doing so, users devote computing power (sometimes it was just processors, then graphics cards, but now these ASIC miners are needed) to figure out a random sequence and be rewarded for it with 12.5 BTC.

Most of these miners no longer use processors or miners for Bitcoins, but for so-called “alt-coins” such as e.g. Ethereum. A graphics card alone is enough to mine this. It should be borne in mind that the stronger it is, the higher the earnings will be. However, because mining is much more demanding than a single graphics card, miners connect in so-called “pools”, where they share this computing power and then share the prize.

Well, all of this consumes anything but a little electricity. Currently, mining consumes more electricity than the whole of the Netherlands. Cryptocurrency mining consumes around 111.7 TWh, while the Netherlands consumes 111 TWh. According to Cambridge, China has the most cryptocurrencies, as electricity is the cheapest there, but it is not the “cleanest”, as most of it is obtained from fossil fuels – coal.

But if you also mine for cryptocurrencies, don’t forget, mining is taxable ->

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