Sunday, February 11, 2018

Bitcoin ... a scourge in energy expenditure :


Bitcoin, virtual currency very popular lately and very appreciated by investors, is a scourge in energy expenditure.

This virtual currency is experiencing a descent into hell. If its purchase rate was estimated at around 17,000 euros, a few months ago, its fall is currently spectacular. This ominous decline for holders of cryptocurrency, however, is a positive for our planet.

The electrical cost for bitcoin production is about 36 TWh of electricity, more than the energy production of small countries like Denmark or Iceland. This problem comes straight from the virtual production needed to create the bitcoin: mining.

The principle of mining consists in decrypting algorithms, via computers connected to a network. Faced with the complexity of these decryptions, it creates a competition until the resolution of the algorithm. The winner receiving the equivalent of 82000 euros. In this race for fortune, state-of-the-art equipment is indispensable and a considerable expenditure of electricity is inevitable.

In one year, the consumption for the production of bitcoin went from 9.5TWh to 47.6TWh, which is exorbitant. This consequence comes straight from the "bitcoin farms", a professionalised place for decryption. In the form of large sheds filled with powerful computers, which rotate constantly. According to Alex de Vries, cryptocurrency specialist, this additional energy cost is not useful for the planet, despite the attractiveness of these virtual currencies.

This reality puts the "managers" in a bad position. While some argue that they are trying to choose the location of their "farms" near the point of power generation, others are developing an awareness, looking for other solutions for the distribution of bitcoin chips.

Only the regularization of bitcoin would stop this surplus of energy expenditure. China, the country with the largest volume of bitcoin production, wants to stop its mining, which would provide a new breath of oxygen to our planet.
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