Bitcoin mining takes more electricity a year than Ireland

It’s known that Bitcoin system consumes more electrical power than Ireland in a year, the statistics showed it last time when token rose beyond 9 000 $
02 December 2017   1537

Financial and economic news Digiconomist says the most part of energy is spent on checking cryptocurrency transactions is equal to 30, 14 TWh per year.

During the constant power consumption of 3,4 GW, Bitcoin mining uses fivefold more energy than the London Array produces.

We can compare this phenomenon with the fact that with such an abundant consumption of electricity, about 36,000 kettles with water can be heated. It can also be compared to the fact that one of the largest US data processing centers consumes only 2% of power that bitcoin network requires. At the same time, this organization conducts about 100 million transactions, but the network of bitcoins as a whole processes 350,000.

The astronomical energy thread is the edge of how the bitcoin network protects itself from cracks. Without centralized credentials to confirm transactions, bitcoin instead of the backup copies of the miners who provide this system with computers to work, rises with the help of unprecedented energy-intensive computing operations. Bitcoin network always rewards its users at the rate of about 11 000 $.

The more bitcoin price is increased, the more new users with their computers to run bitcoin network are appeared.

Everyone observed the third growth of bitcoin in history which took place on the 27th of November. Financial freedom has its price, and in this case this price has the form of electricity – a resource that can be generated in a variety of ways.

In fact, it is for this reason that many large mining operators are now moving to countries where it is possible to obtain abundant energy from natural sources. Currently, one of the startups is experimenting with "smart meters", managed by digital currencies, and this may well become a harbinger of the coming changes.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   119

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.