The process of Bitcoin (BTC) mining used as much energy as would be generated by seven nuclear power plants in 2020.
What is Bitcoin Mining?
In order to “mine” Bitcoin, people connect their computers, known as mining machines, to the cryptocurrency network.
Miners are tasked with verifying transactions made by people who send or receive Bitcoin. This process involves solving puzzles.
The puzzles aren’t integral to verifying movements of Bitcoin, they simply provide a hurdle to ensure no-one fraudulently edits the global record of all transactions. As a reward for pitching in to this system, miners occasionally receive small amounts of Bitcoin.
To make as much money from this process, people often connect many miners to the network – even entire warehouses full of them.
The machines performing the “mining work” are consuming huge amounts of energy while doing so. In 2020, there are now extraordinarily massive services and warehouses stuffed with 1000’s of mining rigs.
Tokeninsight’s 2020 mining analysis and the Cambridge Bitcoin Electricity Consumption Index (CBECI) say that miners paid between $0.03 to $0.05 per kWh this year.
In addition, estimates point out that mining a single bitcoin costs roughly $7,577.51 at the end of March 2020. At present exchange charges, this provides miners a revenue margin of round $4,184 on 24 August.
The CBECI, on Monday, signified that the BTC community consumes 7.46 GW, equivalent to around 63.32 TWh. Moreover, the BTC community is as highly effective as 2,884 utility-scale wind generators or 9.1m horsepower.
In 2019, CBECI mentioned that the global Bitcoin networks consume more than 7GW of electricity. That’s more than the consumption of Switzerland over the same period (58 TWh per year).
The BTC mining resembles the mining of other commodities as it requires exertion. It slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.