It is a well-known fact that cryptocurrency mining requires a lot of electricity. Most of the cryptocurrency mining operations mine Bitcoin. As a result, the amount of electricity which is utilized for mining Bitcoin is significant. According to a study, it is found that 0.5% of the total electricity produced in the world will be used for Bitcoin. This figure is slated to increase by the end of this year.
As the complexity of Bitcoin mining increases, the amount of electricity which is needed in order to mine a single Bitcoin also increases. Also, with the fluctuating value, the amount of electricity which is put into mining is also increasing. Moreover, these days renewable electricity is also being utilized in order to mine Bitcoin. This is further increasing the usage of electricity for cryptocurrency mining.
According to economist Alex de Vries, who is employed at PwC in the Netherlands, according to rough calculations, by the end of this year, 0.5% of the total electricity will be consumed for Bitcoin mining. However, he is not happy with this factor is he thinks that a lot of electricity is being consumed by Bitcoin mining. 0.5% of the world’s total electricity is the amount of electricity which is consumed by the entire island. Thus, the amount of electricity which is being utilized for Bitcoin mining is significant.
According to him, the increase in the usage of electricity will certainly impact of global warming. Global warming will be accelerated due to the increasing demand for electricity. Not the entire electricity which is utilized for Bitcoin mining is produced in a renewable way. That is why, with the increased demand for electricity, the pollution will be more as well. Also, as the difficulty level in mining Bitcoin increases, the consumption of electricity will also increase. When the consumption of electricity increases, it will also lead to global warming. As a result, climate will be hampered even more.
Additionally, we saw a news last time where Japan wants solar power plant for Bitcoin Mining. This is one of the ways Japan wants to reduce the consumption of electricity by using solar power. I think every country where cryptocurrency mining is influencing electricity must start such initiative.
With that being said, currently, as well, the amount of electricity which is consumed by Bitcoin mining operations is at a significant level. Owing to this very reason, it remains to be seen whether the electricity consumption increases further or whether the electricity consumption for Bitcoin mining operation actually gets reduced. According to the study, it is slated to go up even further next year. This is the reason why many analysts, as well as scientists, are worried about the effect on climate of increased electricity consumption for Bitcoin mining.
Let us know in the comment below what you think of the high consumption of electricity due to mining?
