According to a new analysis released on Tuesday, bitcoin miners are spending more than 75% of their revenues on rising power expenses, resulting in a substantial carbon footprint that is harmful to the environment.
Bitcoin (BTC) mining is a power-intensive operation. According to a recent analysis, a single Bitcoin transaction requires roughly 2165 kWh of electricity, enough to power a typical US family for 74 days.
According to CryptoMonday.de, “factor in the about $0.14/kWh that an ordinary household pays, and the scale of cost becomes apparent.”
“Bitcoin mining is essential to the BTC ecosystem’s survival since it not only allows for transaction verification but also helps to safeguard the network. The activity is so important that the Bitcoin network incentivizes miners by paying them a reward “Elizabeth Kerr, a financial content expert, agreed.
The proof-of-work (PoW) consensus process, which is one of BTC’s most important characteristics, but also a miner’s nightmare. For a portion of newly-mined coins, they must solve complicated equations in PoW.
“The calculations need the employment of specialist mining equipment with a lot of processing capacity. Tons of kilowatt-hours (kWhs) are used by the equipment, causing the miners’ power bills to skyrocket “Kerr had been informed.
PoW has also been chastised for its environmental impact, with detractors claiming that it is a wasteful and unsustainable cryptocurrency for the entire cosmos.
According to studies, its carbon emissions are comparable to those of whole countries. According to one study, Bitcoin emits almost 114 megatonnes of CO2 per year, which is similar to the Czech Republic’s.
“Bitcoin isn’t really widespread, but it already has a sizable carbon footprint. Its opponents are concerned about this reality. They argue that widespread acceptance of the currency would have a negative influence on the global environment “Kerr said.
BTC supporters, despite severe resistance from some areas, continue to trust in the currency’s worth. They believe that, despite the environmental risks that its use poses, mankind stands to gain a lot from its widespread acceptance.
“Furthermore, several miners have switched to 100% renewable energy sources. Others are in various phases of that transformation. Environmentalists’ anxieties could be alleviated by switching to greener and more economical alternatives “According to the research,