Mining crypto

Bitcoin Mining Crypto Electricity Costs Over 75% Revenue Cryptomonday

New Delhi: Bitcoin miners are spending more than 75% of their income on soaring electricity costs, resulting in a large carbon footprint that harms our environment, a new report revealed on Tuesday.

Bitcoin (BTC) mining is a very power-intensive process. A recent study showed that a single Bitcoin transaction consumes approximately 2165 kWh of electricity that an average household in the United States would use in 74 days.

“Take into account the roughly $0.14/kWh an average household pays, and the magnitude of the expense becomes apparent,” according to the report.

“Bitcoin mining is essential to the sustenance of the BTC ecosystem because in addition to enabling verification of transactions, it helps secure the network. The activity is so critical that the BTC network encourages miners into crypto thanks to the miner reward,” said Elizabeth Kerr, a financial content specialist.

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One of the main features of BTC, its proof-of-work (PoW) consensus mechanism, is also every miner’s headache.

PoW requires them to solve complex equations for a share of newly mined coins.

“The equations require the use of specialized mining equipment with high computing power. The equipment consumes tons of kilowatt hours (kWh), inflating miners’ electricity bills,” Kerr informed.

PoW has also come under criticism for its environmental footprint and critics argue that it is a useless and unsustainable crypto for the universe.

Studies have shown that its carbon emissions match those of entire nations.

One of the studies estimates that Bitcoin emits almost 114 megatons of CO2 per year, a value comparable to that of the Czech Republic.

“Bitcoin is hardly mainstream, but it already has a significant carbon footprint. It is this reality that worries its opponents. They claim that wider adoption of the coin would have a significant negative impact on the global environment,” noted Kerr.

Despite strong opposition from some quarters, BTC enthusiasts still believe in the value of the crypto. They argue that despite the environmental concerns its use raises, humanity has much to benefit from its wider adoption.

“In addition, some miners have transitioned to fully renewable energy sources. Others are at different stages of this transition. The transition to greener and affordable alternatives should help allay fears among environmentalists,” the report said. .

(This report was published as part of the auto-generated syndicate newsfeed. Other than the title, no edits were made to the copy by ABP Live.)