In the early existence of Bitcoin, when it was less known and worth little, anyone with a computer could easily mine, and it would consume only a little amount of energy. Well, that is bygone now as Bitcoins have now developed an unquenching appetite for energy.
For instance, the process of creating Bitcoin consumes around 96TWh (terawatt-hours) of electricity yearly, greater than a nation’s energy use. This usage, which is close to half a per cent of all the electricity consumed globally, has shut up about tenfold only in the past five years (learn more).
Why is Bitcoin so Energy Exhaustive?
Unlike physical cash notes or currencies controlled and guaranteed by a government, bitcoins exist as the internet currency that does not rely on third parties such as a bank or a government but is managed by a decentralised network of bitcoin users.
All bitcoin transactions are openly accounted for in a public ledger that anyone could examine. New bitcoins are developed as a reward to participants for helping to manage this vast, slouching computerised ledger. However, the clause is that the ultimate supply of bitcoins is limited to increased demand as bitcoins’ value relies on the increase in demand.
Today, however, with advanced technology and many processes using cloud technology, the demand for bitcoin has increased. A single bitcoin is now worth about $45,000, and Users can perform transactions seamlessly.
Given the enormous value of a single bitcoin and its computing power, it is no wonder that their several users get hooked on mining hence bitcoin’s unquenching appetite for energy.