The root of the discussion and the reason for the high energy consumption are the costs of so-called mining. This is the digging process of new bitcoins to confirm blockchain transactions. Enormous computing power is required to solve cryptographic puzzles, the so-called proof-of-work mechanism. This in turn consumes electricity.
Environmental pollution in the news spy cryptosector seems to be solvable
A look at the news spy industry reveals that such a rethinking, as demanded by Trudy, is already underway. More and more prospectors are being attracted to the north of Europe, where favourable electricity prices, low temperatures for server cooling and low taxes are tempting. It is also often argued that Bitcoin consumption inspires the news spy and thus stimulates energy turnaround and environmental protection.
Since a global mass application of Bitcoin not only seems ecologically expensive, but also economically unfeasible in terms of electricity consumption, more and more blockchain developers are currently abandoning traditional proof-of-work mechanisms and opting for alternative confirmation modes and consensus systems that consume less electricity.
This is the conclusion reached this week by the Research Centre for Energy Economics in talks with BTC-ECHO:
“The problem of high energy consumption [can] be solved depending on the blockchain design and application […]”.
Jon Truby also believes in the potential of the Bitcoin secret for the future:
“The possibilities of the Bitcoin secret are endless and its incentives can help to solve a multitude of climate change challenges. One example of this is the development of digital currencies to finance climate protection programmes.” Here is the review by onlinebetrug.
While the consequences of climate change seem more tangible than ever these days, the battle of crypto currencies in environmental protection is not lost. But Bitcoin seems to be the wrong candidate to win it.
A look at the Bitcoin Energy Consumption Index shows that such concerns about the energetic sustainability of the leading crypto currency are already an old hat that they will not fade away so quickly. According to the index, the world’s top crypto deer currently uses as much energy every year as Austria – and the trend is rising.
Up to 1,500 euros of electricity is currently used to mine a single Bitcoin alone. Thus the production of a single coin costs around a quarter of its current trading value and as much as an average four-person household spends annually on electricity.
“If the Bitcoin energy consumption continues to rise as much as it does today, it will not be sustainable. In the long run, miners will have to look for ways to reduce electricity consumption, is therefore predicted by Alex de Vries, blockchain expert at the PwC consulting firm.