The cost of mining Bitcoin is huge, but miners it doesn’t stop

For the entire history of Bitcoin and its miners earned over $ 14 billion . The increasing complexity of mining cryptocurrency does not deter newcomers from this business — on the contrary, with each passing month, more and more devices bottom BTC. Because of this, the resource consumption of the Bitcoin network is also growing, and now it has reached another historic high.

Needs more power

American businessman Rhett Creighton decided that every year on the mining of Bitcoin spent about 4.125 billion dollars , provided that the cost of electricity reaches 7.5 cents per kilowatt hour. However, the expert was somewhat dated data on energy consumption — 55 terawatt-hours per year.

According to the portal Digiconomist, the average power consumption of the Bitcoin network at the beginning of September is equal to 73 terawatt-hours per year. Multiply that number by the above average cost of electricity: it turns out that mining Bitcoins will cost 5.475 billion in 2019.

Source: Bitcoinist

The figure is really huge. At first it may seem that the extraction of the relevant equivalent electricity is costly to the environment because the world is still not switched to renewable resources. In reality, to determine the exact degree of influence of Bitcoin on the environment is very difficult, because in this equation many variables.

First, the amount of expenditure is very much influenced by the cost of electricity. If the rate is set at 5 cents per kilowatt*hours, the above figure will be reduced to 3.65 billion dollars. Alex de Vries, Dutch economist, PwC, said that many miners mined cryptocurrency with much lower rates. For example, in China would be easy to find areas where there is cheap electricity for 3-4 cents.

By the way, in China is based almost half of all computing power of BTC. This is bad, since a large part of the country’s electricity is generated by coal power plants. Their waste will negatively affect ambient air quality.

Topic: Chinese miners forced to suspend production of Bitcoin. What is the reason?

It is noteworthy that the resource use of Bitcoin depends on its price. As seen in the chart below from Digiconomist, the power consumption of crypto currencies fell dramatically in the period from November to December 2018 (the period marked with blue lines). Let’s remind, that then the value of BTC has dropped sharply from 6000 to 3500 dollars.

Source: Digiconomist

We recommend you to read: By year-end, mining Bitcoin will become a nightmare. How and why?

Another problem is the disposal of old ASIC miners. Obsolete equipment for the mining of Bitcoin, however, only 15 percent of the total amount processed. The rest goes straight to landfill. But in Argentina, the crypt helps to deal with waste — local authorities announced a reward program of the population for the correct sorting of waste.

The conclusion is: mining Bitcoins requires huge amounts of resources, however, the activity brings no less profit. To calculate the exact figure is impossible, because the cost of electricity is different for everyone. Besides, it is impossible to count holders of so-called free sockets, because they will not say exactly. Anyway, a list of the best countries for mining cryptocurrency known to us. In which case I'll meet you there.

Look on our page in Yandex.Zen, there cool.


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