We have heard a lot about how countries are trying to become much more energy efficient these days. There is a move away from fossil fuels and towards renewable energy, and many countries are leading the way. Of course, this is easier for small countries like Denmark to achieve, versus larger nations like the United States. But, there is still plenty that can be done to make a nation more eco-friendly.
This brings us to the issue of Bitcoins. These look to be the future of the modern world, and may yet become the ultimate form of currency for people across the world. If you haven’t yet joined the Bitcoin bandwagon then now is the perfect time, after looking at how much the currency has grown in the past five years. People are looking to earn Bitcoins any way they can, and the most common method is via mining.
Mining is a method involving hardware, software, and a huge amount of electricity. It allows users to virtually mine different areas of the internet and try to uncover new Bitcoins. This is a popular exercise, but it’s also a very expensive one that costs a lot of time and energy, not to mention money. These bitcoins can be used to buy various different items as brands are becoming more aware of their existence. They can also be spent at pretty much any casino online, however most people seem to be keeping them as an investment at the moment, waiting for their value to increase even further.
We have recently discovered that Bitcoin is very inefficient in terms of its energy usage. Studies revealed that a single Bitcoin transaction will use up the same amount of energy as over 1.5 US households! Researcher Christopher Malmo has speculated that adopting Bitcoin as a major currency anytime soon could be disastrous. In fact, he claimed it would probably increase energy consumption to the point that global warming would be hugely exacerbated.
Bitcoin transactions are processed via a digital network and contain a lot of complex algorithms. This is one of the reasons why they take up so much energy. The current network of Bitcoin miners is in place for security purposes, but they also consume the energy equivalent to around 280,000 households in the US! Yikes!
Imagine how bad this would be if everyone in the world were using Bitcoin as their principal currency! It may well be the case that the Bitcoin inventors come up with a way to make the currency and the transactions much more energy efficient. New mining hardware is being developed with an eye on making it more efficient and less energy sapping. But, this is really the only way to curb the amount of energy that’s being used by Bitcoin and its miners.
As the popularity of Bitcoin increases, the idea that it could wind up using as much energy as a country like Denmark is definitely not unheard of. We will have to look at the growth of Bitcoin over the next few years, and how software adapts to make the mining process more efficient.