Today, only 1% of the global population is investing in cryptocurrencies. However, mining those cryptocurrencies is something that all of us have to pay for. This is what Deutsche Welle thinks on the matter.
The buying craze around Bitcoin and other cryptocurrencies has been growing exponentially over the last year. Yet, there is nothing to be surprised about it. The thing is that Bitcoin alone has gone up in value from 1000 dollars all the way up to 20000 dollars per 1BTC! So, now the entire world is all over cryptocurrencies. This is cryptomania! People have been investing billions of dollars in the industry, whether this is mining or simple investing through online exchanges.
However, the law of conservation of energy is a universal law so works everywhere, whether you like it or not. While some of us treat cryptocurrency as the symbol of economic freedom, this poses a serious environmental danger for the entire world.
The whole point is, mining cryptocurrencies consumes an extreme amount of electricity. While it’s really difficult to provide precise figures, international experts have come up with approximate ones. According to Digiconomist, Bitcoin mining alone consumes 32 terawatt-hour, which is the annual electricity consumption of a small country like Ireland or Nigeria. Yet, Bitcoin is just one of a thousand cryptocurrencies out there. Today, mining just 1Bitcoin requires 100 kilowatt-hour. 300000 Bitcoins are mined globally every single day.
Why is mining so energy-consuming? The thing is, mining needs super-powerful computers, which consume a lot of electricity. The more complicated the mining algorithm, the more powerful computers are needed. The more powerful the computers, the more energy they consume. And that’s about it.
Greenpeace is in panic! The world mostly uses fossil fuels to produce electricity. Most mining farms are located in China, where coal is the primary fossil fuel for electricity production. With that being said, producing 1 Bitcoin produces as much of carbon dioxide as Boeing 747 carrying 1 passenger for an hour.
However, each coin has two sides. Experts assume that cryptocurrency mining will accelerate the rise of green energy.
