Mining Bitcoin is Becoming More Expensive

Mining Bitcoin is Becoming More Expensive

Finance
February 14, 2018 by Bitzamp
264
Mining Bitcoin is Becoming More Expensive Analysts fear that Bitcoin and Cryptocurrency mining centers are spending too much electricity, and that the process of verifying cryptocurrency transactions is worsening the global environment. Also Read: Setting up Bitcoin in Iceland, To use More Energy in Mining Bitcoin In December 2017, several analysts criticized the electricity consumption
Bitzamp

Mining Bitcoin is Becoming More Expensive
Analysts fear that Bitcoin and Cryptocurrency mining centers are spending too much electricity, and that the process of verifying cryptocurrency transactions is worsening the global environment.

Also Read: Setting up Bitcoin in Iceland, To use More Energy in
Mining Bitcoin

In December 2017, several analysts criticized the electricity consumption of bitcoin and cryptocurrency mining centers, calling the mining process an “environmental disaster”.
Smari McCarthy of the Iceland Pirate Party said that excessive consumption for Bitcoin mining is not practical because of the use of Bitcoin is for “financial speculation”.

“We have spent tens of thousands of megawatts producing something that has no tangible existence and has no real utility for humans outside the realm of financial speculation”.

If environmentalists and analysts perceive the use of a little money and other cryptocurrencies for financial speculation, the consumption of a massive amount of electricity could be considered unrealistic. However, the main application of Bitcoin is not financial speculation. Bitcoin works in an effective currency.

Speculation exists in all sectors that are at the beginning of growth. At first, investors will speculate on the value and trend of the price of cryptocurrencies and crypto-assets. However, investors will inevitably go from speculation to the use of utility tools and fungibility.
Obviously, electricity costs have a significant impact on the operating costs of mining centers and facilities. As such, cryptocurrency miners focus on its operating costs and maximize its profitable markets by using cheap electricity sources.

In areas such as northeastern China, Peru and Chile, the supply of electricity from renewable sources is so abundant that electricity is distributed free of charge. Chile, for example, in 2016, a product of solar energy Since then, the Government of Chile has built more solar power plants and focused on the construction of infrastructure.

It is important to recognize that the minimum consumption of non-renewable and expensive electricity is in the interest and benefit of minors cryptocurrency. It is for this reason that many of China, Chile, Norway and Iceland are able to find a source of renewable energy.

In Iceland, almost 100% of energy and electricity are products from renewable sources. Hydropower and geothermal energy account for 99.8% of Iceland’s electricity. In Norway, another popular country for miners of cryptocurrency, hydropower accounts for a staggering 95 percent of the electricity produced by the country. In both countries, electricity used by households and facilities is almost entirely produced by clean and renewable energies. It is beneficial for minors to resettle in countries like Iceland and Norway.


Join Us On Telegram


 

Add a Comment