With all its glamour of being a decentralized currency and appreciating in value to over $20 000, you probably didn’t know Bitcoin’s mining process consumes a lot of energy. Mining basically is a competitive process in which different users(miners) on the bitcoin network get into a race to add a transaction record to the system(blockchain).
The winning miner would have generated a winning number among a vast amount losing numbers generated by the computer. So, to generate a winning number first depends on a computer’s processing power (hash rate) and a bit of luck.
In return for winning the competition, the winning miner is awarded bitcoins by the bitcoin system and hence, how bitcoins are added into the circulation. The carbon footprint as a result of this mining process is shocking.
According to an index maintained by Digiconomist, just doing a single transaction of Bitcoin miners use electricity that can power as much as 27 houses. If Bitcoin was a country it would have been consuming as much energy as Israel on an annual basis.
That means the electricity used to mine bitcoins for a year by all the miners in the world can power Israel for a year. As I explained previously, miners must find a certain winning number by generating numbers at
random continually to win newly minted bitcoins. Read more from techzim.co.zw…
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