The popularity of bitcoin and cryptocurrency in general has skyrocketed over the past year. As investors look to make more out of their investments, one of the best ways to do so is by cutting the energy costs it takes to mine cryptocurrency.
The industry on bitcoin mining consumes a staggering 22.5TWh of energy over the course of one year. To put this in perspective, that equals about 13,239,916 barrels of oil annually. With around 12.5 bitcoins being mined every 10 minutes or so, this puts the energy cost of mining one bitcoin at about 20 barrels on oil.
The opportunity that mining bitcoin offers to the public is extremely lucrative and has the opportunity to make a large sum of money for the miner. With one bitcoin now equalling the value of over 100 barrels of oil, the price of mining continues to make it attractive, as well as one of the most valuable commodities on the planet. If miners can find a way to bring their energy usage down, the profits will begin to skyrocket even further.
Transactions for bitcoin are secured by those who mine the coin. Those miners compete to solve computational problems where they are then rewarded in the form of a coin. These coins can be held for value, used to purchase items, or often can be traded into the fiat currency of choice. Instead of an oil rig, the users computer is doing the mining. The more powerful the computer, the quicker one can solve that computational problem, thus rewarding them with more currency.
If energy usage can go down, people who mine cryptocurrency will be able to not only save the planet, but continue to make higher and higher profits. Energy use is not something that is thought about or considered often in the cryptocurrency market, but the potential it brings continues to be incredibly high.