Elon Musk and China are getting more concerned about the massive power requirement that it takes to mine Bitcoin.
China continues to regulate and crackdown on Bitcoin mining while Tesla CEO Elon Musk suspends the EV company's acceptance of Bitcoin cryptocurrency as payment. These are the results of Bitcoin's excessive need for massive power quantities to mine.
It even caused the cryptocurrency to cut down its worth by half--going from over $64,000 in April and over $34,000 in June.
How Bitcoin Mining Works
Bitcoin's main sustainability issue is all about the massive power quantity that it requires for mining.
According to News Axes, Bitcoin mining revolves around how new Bitcoin cryptocurrency debuts crypto market circulation. It works with the help of miners who confirm transactions that take place on Bitcoin's blockchain to prevent fraud. As a reward, the miners are given new Bitcoin.
Transaction miners typically clear up sophisticated and complicated mathematical issues using the trial and error method. It requires complex laptop methods and a significant amount of energy - with most computing energy uses electrical power.
News Axes reported that the monstrous laptop methods that Bitcoin miners use pose additional difficulty.
Dabo Guan, Chair of Local Weather Change Economics Division under Earth System Science, said that the corresponding drawback is the wide-scale and frequent equipment substitution that mining requires in supporting high-functioning mining actions.
Guan added that manufacturing and disposing of digital machineries have intensive effects on emission.
How Renewable Power Could Decrease Greenhouse Fuel Emission
News Axes stated that the main issue with using plenty of electrical energy is that the power emitted by burning fossil gasoline radiates excessive greenhouse gasses. It will trigger a wide-scale weather change, which would bring more harm than good.
In conclusion, transitioning Bitcoin mining to utilize renewable power might not cut back the power consumption. It will still cut back on using fossil fuels.
An analysis paper by Guan and colleagues revealed that Bitcoin's power consumption in China was expected to generate high quantities of greenhouse fuel emissions equivalent to the Czech Republic's or Qatar's yearly output.
How Bitcoin Functions
News Axes stated that Bitcoin functions with a "proof-of-work" mechanism, leading to excessive power usage during mining.
Marc Bevand, the developer of Cambridge Bitcoin Electrical Energy Consumption Index's methodology, stated that the Bitcoin system selects a miner to sold computation - with proof of labor. The extra work converts into computational energy that the miner places in, gaining different Bitcoin.
But if Bitcoin would switch into a "proof-of-stake" mechanism that other cryptocurrencies like Ethereum use, it might improve its consumption.
A "proof-of-stake" mechanism usually works by organizing the cryptocurrency into how many forex an investor owns and not based on the involved miners. Bevand added that, for example, if you own 3% of Ethereum 2.0, then it would be possible for you to generate and confirm 3% of the transaction.
He also mentioned other aspects to consider, such as customers' need for personal and minimal quantity.
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Written by Fran Sanders