Mining Bitcoin is More Arduous than Excavating Gold

Mining bitcoin requires a computer processing power to complete enormous calculations to produce an output called cryptocurrency. According to experts, getting $1 worth of bitcoin requires three times more energy than obtaining the same value of gold. Researchers found the average energy required to produce bitcoin is 17, seven, seven and 14 mega joules (MJ) of energy. A free computer program generates Crypto coins to successfully complete mining. However, this processing requires huge power consumption, which means more investment in electricity supply. In case of lack of funds, miners can take out loans without a guarantor.

The implications of Bitcoin produce on environment

The environmental impact of the concurrency mining is also significantly noticeable. Experts found that the mining of any 4 crypt coins emit 3-15 million tons of carbon dioxide. Last year bitcoins and other forms of electronic cash gave off 69 million metric tons of CO2. A recent study has warned that the computers used to mine bitcoins discharge as same amount of carbon dioxide as one car emits in total every year in the UK. Scientists have suggested that the processing of crypto coins will have raised global temperature by 2 degree Celsius within the next 15 years, which may strike the world by droughts, flood and catastrophic storms.

A brief on the electronic cash

Bitcoin is a digital coin, an internet version of money. It is a decentralized currency, which means no government regulates its circulation. An open-source computer programmer generates these coins by solving the complex mathematical structure – the mining process. With the help of bit-coin network, these coins can be sent from one user to another. All transactions, known as block chain, are done through the bitcoin network. One can utilize these coins for exchanging digital currencies, buying a product and service through online network. Each bitcoin has a public address and a unique key that gives the specific identity to them. The idea of mining bitcoins was to introduce it as an independent currency that can be supplied throughout the network without the help of a mediator. Though the currency has become largely eminent, it has become matter of criticism for illegal transactions, consuming innumerable amount of electricity, and thefts.This currency was launched in 2009 but who invented bitcoins has been one of the biggest mysteries in the technological world. It is believed that the currency was produced in the pseudonym of Satoshi Nakamoto.

Why are bitcoins getting more popular than traditional currency?

One of the most significant reasons for the eminence of these coins is decentralisation. No single authority controls the bitcoin network rather it is run by an open network of computers. This open network maintains privacy, which is not possible while making transactions with FIAT currency. Senders do not need to be identified. When a transaction request is put, the protocol confirms that senders have all necessary bitcoins to make it successful and has the authority to send money. Bitcoins can be divided into the smallest unit to perform micro transactions. Bitcoins appeal to a large number of people but they have some disadvantages too. Since all transactions are done with the help of an open network, the system must be secure otherwise wallet files can go corrupt. No transaction can be reversed if you do not receive goods and material that you asked for. Though block chain are susceptible to threat, the open network ensures that no personal details related to the user and wallet is snitched. Miners try all the harder to keep the network safe and secure. As long as they are safe, there is no risk of purloin.

Hi, I am Carol Adams, an avid financial blogger, with one of the consistently growing lending companies in the UK. I’m enjoying my profession and recently found a hobby- of course, it is nothing else but BLOGGING