Bitcoin mining and electricity consumption: Electricity needed to mine bitcoin is more than used by ‘entire countries’…

..

..

Bitcoin mining – the process in which a bitcoin is awarded to a computer that solves a complex series of algorithm – is a deeply energy intensive process

Lauren Aratani

Sat 27 Feb 2021 08.00 GMT Last modified on Sat 27 Feb 2021 08.03 GMT

It’s not just the value of bitcoin that has soared in the last year – so has the huge amount of energy it consumes.

The cryptocurrency’s value has dipped recently after passing a high of $50,000 but the energy used to create it has continued to soar during its epic rise, climbing to the equivalent to the annual carbon footprint of Argentina, according to Cambridge Bitcoin Electricity Consumption Index, a tool from researchers at Cambridge University that measures the currency’s energy use.

Recent interest from major Wall Street institutions like JPMorgan and Goldman Sachs probably culminated in the currency’s rise in value and an endorsement by Tesla’s Elon Musk helped drive its recent high as investors bet the cryptocurrency will become more widely embraced in the near future.
.

Bitcoin mining – the process in which a bitcoin is awarded to a computer that solves a complex series of algorithms – is a deeply energy-intensive process. Advertisement

“Mining” bitcoin involves solving complex math problems in order to create new bitcoins. Miners are rewarded in bitcoin.

Earlier in bitcoin’s relatively short history – the currency was created in 2009 – one could mine bitcoin on an average computer. But the way bitcoin mining has been set up by its creator (or creators – no one really knows for sure who created it) is that there is a finite number of bitcoins that can be mined: 21m. The more bitcoin that is mined, the harder the algorithms that must be solved to get a bitcoin become.

Now that over 18.5m bitcoin have been mined, the average computer can no longer mine bitcoins. Instead, mining now requires special computer equipment that can handle the intense processing power needed to get bitcoin today. And, of course, these special computers need a lot of electricity to run.

The amount of electricity used to mine bitcoin “has historically been more than [electricity used by] entire countries, like Ireland”, said Benjamin Jones, a professor of economics at the University of New Mexico who has researched bitcoin’s environmental impact. “We’re talking about multiple terawatts, dozens of terawatts a year of electricity being used just for bitcoin … That’s a lot of electricity.”

https://www.theguardian.com/technology/2021/feb/27/bitcoin-mining-electricity-use-environmental-impact

..

Bitcoin mining in northern Chinese province to be halted amid energy-saving push

Bitcoin mining requires huge amounts of computing power and uses large amounts of energy, but China has pledged to achieve carbon neutrality in 2060Inner Mongolia was the only one of 30 areas under Beijing’s energy consumption and energy intensity review that failed to meet the targets in 2019

Frank Tang in Beijing

Published: 8:00pm, 1 Mar, 2021

China’s top energy consuming province plans to suspend all new and existing bitcoin mining projects before the end of April, as Inner Mongolia faces mounting pressure to meet its energy-saving targets.

Bitcoin mining requires huge amounts of computing power and uses large amounts of energy, with operations attracted to areas like Inner Mongolia, Sichuan and Xinjiang due to low electricity prices.China has pledged to halt the rise in its carbon emissions before 2030, and it has committed to achieving carbon neutrality in 2060.

But Inner Mongolia was the only one of 30 areas under Beijing’s energy consumption and energy intensity review that failed to meet the targets in 2019, drawing criticism from the central government in September.

The plan, released last week by Inner Mongolia’s industry and energy departments, is subject to changes as the agencies are still soliciting public opinion until Wednesday,

But it is widely believed to be a routine procedure ahead of the official announcement, which is highly likely to be implemented given the country’s commitment to fighting pollution and reducing its carbon emissions.

The efforts to curb all high energy-consuming industries will certainly pour cold water over the rising enthusiasm for bitcoin miners, which have been spurred by soaring prices, with the cryptocurrency currently trading at over US$47,000, compared to over US$8,500 a year ago.

https://www.scmp.com/economy/china-economy/article/3122419/chinas-carbon-neutral-push-gathers-pace-coal-fired-power

..

..

This entry was posted in Uncategorized and tagged . Bookmark the permalink.

1 Response to Bitcoin mining and electricity consumption: Electricity needed to mine bitcoin is more than used by ‘entire countries’…

  1. Pingback: Malaysia: Bitcoin mining power thieves are arrested… | weehingthong

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s