Friday 19 March 2021

How Hard is Bitcoin to Mine?

BitCoin mining consumes 180 billion kilowatt-hours of electricity a year, causing a serious shortage of chips.

As a unique digital currency, the emergence of Bitcoin can be said to make all investors around the world into a carnival. If anyone has a few Bitcoins, it is undoubtedly the "most beautiful boy" in the audience. However, as a currency that is not in real circulation, Bitcoin can only exist as a virtual currency, and the core is decentralization.

BitCoin mining

Since Bitcoin officially entered the digital currency trading stage in 2009, no one knows who the inventor "Satoshi Nakamoto" is? It doesn't matter whether it is a person or a title, because Bitcoin's unique hype has attracted people from all over the world, and the price has soared from one cent at the beginning to tens of thousands of dollars.

No doubt that Bitcoin's status today has something to do with everyone here. This is caused by the extreme greed of mankind for wealth. Some people say that Bitcoin exists in line with trends, and some people think that Bitcoin is completely an unrealistic digital currency that will eventually form a huge bubble one day.

However, with the soaring of Bitcoin price, it is very difficult to dig one Bitcoin now. Some people are desperately digging one or two all year round, but because of excessive Bitcoin mining, global power consumption is tight.

BitCoin Mining Consumes Electricity Badly

Mining Bitcoin Extremely Consumes Power

According to incomplete statistics, computer mining of Bitcoin consumes more than 180 billion kilowatt-hours of electricity a year. What does this imply? It is equivalent to the annual electricity consumption of 300 million people in the world, and the electricity consumption is not proportional to the bitcoins mined. It is important to know that in order to mine Bitcoin in Seoul, South Korea, the entire surrounding industrial park was cut off, the progress of industrial production slowed down, and the power consumption was huge.

Due to the algorithms set by Bitcoin, if there are more people participating, the less Bitcoin will be dug. For example: there is 1 ton of sand on the ground, and if one is moved, you can get 100 yuan, but 100 people If you move, you can only get 1 yuan per person, which is also a cost and effort.

In order to mine Bitcoin, countries around the world move so-called "mining farms" to sparsely populated places or countries with cheaper electricity bills. Otherwise, the cost is too high. The second thing is that while the electricity consumption is large, the carbon dioxide emissions are also extremely high, which is also a high-consumption product for society.

Mining Bitcoin Consumes Hardwares

Moreover, mining Bitcoin requires a large number of chips to perform operations. Only from November 2020, the global supply of chips is very tight, from car chips, mobile phone chips, computer graphics chips, etc., so that many car companies have to The reduction in automobile production resulted in stagnation of automobile production and employees were resigned.

And many consumers who mine Bitcoin are hoarding chips in their hands. The graphics card that originally only cost about 5,000 yuan has now been hyped to more than 15,000 yuan, which has tripled. This has also led to the distrust of Bitcoin in most countries. The attitude does not allow trading in the country.

Of course, coupled with Bitcoin's unique decentralization technology, Bitcoin has become a target of "money laundering", crime, and the dark web. Therefore, we must calmly think about Bitcoin instead of chasing it madly.

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