Bitcoin and other cryptocurrencies have seen their value surging in recent months making their market capitalization in the hundreds of billions of dollars. Since the start of the cryptocurrency bubble last year, the market cap has increased by more than 20 times.
Miners compete to solve complex mathematical problems in order to finish Bitcoin transactions. The purpose of a miner is to add a block to the network. It necessitates a tremendous amount of computing and electrical resources.
As bitcoin's value and popularity rise, the numerical puzzles that the excavators must solve become more sophisticated, requiring more powerful computers.
What Is Bitcoin Mining
The process of creating new bitcoins for circulation is known as bitcoin mining. It also requires keeping the blockchain ledger up to date. The usage of a network of high-performance computers is required for mining. Bitcoin transactions require a series of computers to solve tough mathematical problems in order to complete.
Why Bitcoin Require So Much Power?
The Bitcoin mining cycle did not burn through country state metrics of power during Bitcoin's early days. However, it is inherent to the digital currency's innovation for the numerical riddles to become increasingly difficult as more people compete to solve them. As more people want to get involved with Bitcoin, this dynamic will accelerate.
Buying Bitcoin is an energetic process and its energy consumption has been steadily increasing year by year from 2016 to 2021, reaching a record 149 TWh. According to experts, in comparison, the total energy consumption of Google is 12.2 TWh, while all data centers in the world, except for those that extract bitcoins, consume about 200 TWW of energy.
To combat this, an ever-increasing number of specialized computers known as rigs are joining the fight, pumping massive amounts of computing and electrical energy into the biological system in the race to solve Bitcoin math puzzles and win the corresponding jackpot.
That means that even if a large number of machines are working on a comparable problem, only one of them will be able to finish it and receive the bitcoin payout.
It also takes a long time to complete a single transaction, taking roughly 15 minutes. Other transactions that take less than a second and use significantly less power than bitcoin transactions.
To solve this problem, more and more specialized computers called pylons have joined the battle, sending huge amounts of computations and electrical energy to biological systems to solve Bitcoin math puzzles and win prizes.
Obtaining Bitcoin is an energy-intensive process, and its power consumption rose steadily from 2016 to 2021 on an annualized basis, reaching an all-time high of 149 terawatt-hours (TWh). According to experts, this compares to Google's total energy use of 12.2 TWh and the approximately 200 TWh consumed by all data centers in the world save those that mine Bitcoin.
Bitcoin Comes with A Big Reward
The prospect of a large payout has driven the growth of massive data centers dedicated to Bitcoin, which reached a market worth of $1 trillion this year.
All that is required now is to make it more future-proof. The long-term viability of using green energy in crypto mining is still up in the air. It is necessary to make efforts to guarantee that we are headed in the right way.
The crypto sector should be at the forefront of developing technology that is more energy efficient. To close the gap between renewable and non-renewable energy sources, more investment is needed.
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