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Bitcoin Energy Consumption

Bitcoins Insane Energy Consumption, Explained

Bitcoins Insane Energy Consumption, Explained

Sign up or login to join the discussions! Bitcoins insane energy consumption, explained One estimate suggests the Bitcoin network consumes as much energy as Denmark. The skyrocketing value of Bitcoin is leading to soaring energy consumption. According to one widely cited website that tracks the subject, the Bitcoin network is consuming power at an annual rate of 32TWhabout as much as Denmark. By the site's calculations, each Bitcoin transaction consumes 250kWh, enough to power homes for nine days. Naturally, this is leading to concerns about sustainability. Eric Holthaus, a writer for Grist, projects that, at current growth rates, the Bitcoin network will "use as much electricity as the entire world does today" by early 2020. "This is an unsustainable trajectory," he writes. Global energy production obviously can't double in two years, and it would be an environmental disaster if it did. Fortunately, while the Bitcoin network consumes a ridiculous amount of energy, particularly on a per-transaction basis, the situation isn't as dire as critics like Holthaus claim. Bitcoin's energy consumption won't necessarily march steadily upward. Indeed, Bitcoin's energy consumption is designed to fall in the long run. And Bitcoin's energy consumption isn't tied to the number of transactions the network handles. That means that increasing use of the network won't necessarily impose a high environmental cost. The Bitcoin network consumes massive amounts of energy Bitcoin miningthe process that generates new bitcoins while maintaining the network's shared transaction ledgeris a secretive global industry.No one knows exactly how much energy it consumes. However, we can make some educated guesses. For starters, we know the industry's revenue: Bitcoin miners currently generate75 bitcoins Continue reading >>

Bitcoin Blockchain Consumes A Lot Of Energy Engineers Changing That

Bitcoin Blockchain Consumes A Lot Of Energy Engineers Changing That

Innovators from top institutions such as M.I.T. and Cornell University and tech titans such as IBM and Intel are developing a number of "green" blockchain innovations to address demand by businesses for blockchain that streamlines transactions of all sorts. Blockchain can help automate transactions and records those transactions on a tamper-proof digital record available to all participants in a network. Energy efficiency allows blockchain to scale for business needs, developers said. That means processing significantly more transactions per second at minimal cost, while accommodating an ever-expanding user base. The potential reward has spurred a race to develop the winning blockchain solutions for companies and organizations. "The people who come out with the winning algorithms are going to capture a substantial portion of the many billions of dollars that go into back-end systems," Cornell's Sirer said. "We are in a phase where a thousand blockchains will bloom. And the markets will decide on a few winners." Bitcoin's cousin ethereum is trying to position itself to be one of those winners among the business community. Developers have created a new blockchain that would reduce its energy consumption to almost zero and allow it to scale as well as improve security, said Mike Goldin, a software engineer at ConsenSys, which builds applications on top of ethereum. "If we get to a place where ethereum scales 10,000 X, a million X, but it's using a million X energy ... game over," Goldin said. "We'd have to drain the power of the sun to power this blockchain. If we scale ethereum, but we don't also scale the power consumption, it's useless." The move will further set ethereum apart from bitcoin, with whom it currently shares a similar blockchain algorithm called proof-of-w Continue reading >>

Five Myths About Bitcoins Energy Use

Five Myths About Bitcoins Energy Use

By Peter Van Valkenburgh / January 23, 2018 Bitcoins recent incredible price increases have come along with equally sensational headlines about its energy usage. In this brief backgrounder we are going to debunk five pernicious myths about Bitcoins energy use that you may have run across while reading the news. Myth 1: Miners are spending tons of electricity performing a useless calculation. People who dont understand the core computer science breakthrough inherent in Bitcoin naturally assume that miners only do one thing: burn electricity to enrich themselves with new bitcoins. These critics are mistaken, but its a reasonable mistake to make because mining, the term itself, is a bit misleading. Search the original Bitcoin white paper from 2008 and you wont find the word miners used describe the people we call miners today. The white paper makes a comparison to gold miners and that's about it; the author generally reffered to Bitcoin network participants as "nodes."As a name that stuck, "miners"first pops up in 2010 on an Internet forum called BitcoinTalk and, for a while, it was used interchangeably with the term minting. When technologies dont have unified corporations or inventors working on them and branding them, terms to describe them emerge organically from the communityit comes with the territory. Mining is a misleading term because it only tells half the story. Real world miners leverage expensive capital to dig impressive holes into the earth, to discover and extract marketable metals, minerals, and gems. They burn resources to get valuables. A bitcoin miner does this too, no doubt, but they also do something else that is fundamental to Bitcoins core computer science breakthrough: they validate data on a computer network running an open consensus mechanism. ( Continue reading >>

Bitcoins Energy Usage Is Huge We Can't Afford To Ignore It

Bitcoins Energy Usage Is Huge We Can't Afford To Ignore It

Bitcoins energy usage is huge we can't afford to ignore it The cryptocurrency uses as much CO2 a year as 1m transatlantic flights. We need to take it seriously as a climate threat Last modified on Wed 14 Feb 2018 11.54EST Bitcoin mining computers are pictured in Bitmains mining farm near Keflavik, Iceland.Photograph: Jemima Kelly/Reuters Bitcoins electricity usage is enormous. In November, the power consumed by the entire bitcoin network was estimated to be higher than that of the Republic of Ireland. Since then, its demands have only grown. Its now on pace to use just over 42TWh of electricity in a year, placing it ahead of New Zealand and Hungary and just behind Peru, according to estimates from Digiconomist . Thats commensurate with CO2 emissions of 20 megatonnes or roughly 1m transatlantic flights. That fact should be a grave notion to anyone who hopes for the cryptocurrency to grow further in stature and enter widespread usage. But even more alarming is that things could get much, much worse, helping to increase climate change in the process. Burning huge amounts of electricity isnt incidental to bitcoin: instead, its embedded into the innermost core of the currency, as the operation known as mining. In simplified terms, bitcoin mining is a competition to waste the most electricity possible by doing pointless arithmetic quintillions of times a second. What is bitcoin and is it a bad investment? Bitcoin is the first, and the biggest, cryptocurrency a decentralised tradeable digital asset. Whether it is a bad investment is the big question. Bitcoin can only be used as a medium of exchange and in practice has been far more important for the dark economy than it has for most legitimate uses. The lack of any central authority makes bitcoin remarkably resilient to censo Continue reading >>

Blockchains Use Massive Amounts Of Energybut Theres A Plan To Fix That

Blockchains Use Massive Amounts Of Energybut Theres A Plan To Fix That

Blockchains Use Massive Amounts of EnergyBut Theres a Plan to Fix That Making cryptocurrencies less energy-hungry will mean reengineering how blockchains work. Its a staple of any argument over whether Bitcoin has a long-term future: Yeah, super-cool that it eliminates the need for a trusted authority when exchanging value. But do you realize how much energy it uses? A self-driving Uber has killed a pedestrian in Arizona Its true. It's been estimated that Bitcoin guzzles about as much electricity annually as all of Nigeria. Ethereum gulps electrons too, as do most other cryptocurrencies. As bad as that sounds, though, theres reason to believe a solution may be at hand. This piece appears in our new twice-weekly newsletter, Chain Letter, which covers the world of blockchain and cryptocurrencies. Sign up here its free! Before we get to that, though, lets talk about miners. Blockchains get a lot of love, but they are only shared sets of data. What brings cryptocurrencies like Bitcoin and Ethereum to life is the way all the computers in their networks agree, over and over, that what a blockchain says is true. To do this, they use an algorithm called a consensus mechanism. Youve probably heard it called mining. (See: What Bitcoin Is, and Why It Matters ) Cryptocurrency miners do much more than unlock new coins. In the process, they check the blockchain to make sure people arent spending coins fraudulently, and they add new lists of transactionsthe blocksto the chain. Its the second step, meant to secure the blockchain from attacks, that guzzles electricity. Ultimately, the miners must transform each list of most recent transactions into a signature that can serve as proof that the information is true. All miners can do this, using a cryptographic tool that takes any input a Continue reading >>

Bitcoin's Energy Consumption Can Power An Entire Country -- But Eos Is Trying To Fix That

Bitcoin's Energy Consumption Can Power An Entire Country -- But Eos Is Trying To Fix That

Bitcoin's Energy Consumption Can Power An Entire Country -- But EOS Is Trying To Fix That Partner Zeroth.AI. Founder RavenProtocol.com Rocco.AI GoodAudience.com Opinions expressed by Forbes Contributors are their own. Proof of work (POW) is data that is costly and time-consuming to produce but easy for others to verify. The Bitcoin POW mechanism is so costly that it consumes the same amount of electricity it takes to power a country like Switzerland in one year. Bitcoins current estimated annual electricity consumption is 61.4 TWh, which is also equivalent to 1.5% of the electricity consumed in the United States . EOS , anothercryptocurrency, is leading the way to fix that, but let's first dive into issues with POW. Miners contribute computing power (hashes)to the network, which essentially means one hash = one chance. In order for participants to stand a chance to be rewarded, they will contribute a large amount of computing power with hardware setups (mining rigs) to solve cryptographic puzzles. The mechanism for POW introduced qualified voters in a system of anonymous and untrusting parties. Mineable cryptocurrencieshave more than 71% of market value of the top cryptocurrencies . Key players for the ecosystem are miners, developers, decentralized applications (DApps), companies and users leveraging cryptocurrencies as a store or exchange of value. This ecosystem is great, except miningimpacts society in terms of overall electricity costs incurred. Impetus And Challenges For Proof Of Stake Most non-mineable cryptocurrencies use forms of the proof-of-stake (POS) mechanism. With POS, one coin is equivalent to one chance. In order for anyone to control the network, they will need to own more than 51% of the coins. Anyone can obtain rewards from the network for staking t Continue reading >>

There Is Nothing Virtual About Bitcoins Energy Appetite

There Is Nothing Virtual About Bitcoins Energy Appetite

Technology |There Is Nothing Virtual About Bitcoins Energy Appetite An employee at a Bitmain facility in Inner Mongolia, one of the biggest Bitcoin farms in the world. Credit Giulia Marchi for The New York Times SAN FRANCISCO Creating a new Bitcoin requires electricity. A lot of it. In the virtual currency world this creation process is called mining. There is no physical digging, since Bitcoins are purely digital. But the computer power needed to create each digital token consumes at least as much electricity as the average American household burns through in two years, according to figures from Morgan Stanley and Alex de Vries, an economist who tracks energy use in the industry. The total network of computers plugged into the Bitcoin network consumes as much energy each day as some medium-size countries which country depends on whose estimates you believe. And the network supporting Ethereum, the second-most valuable virtual currency, gobbles up another countrys worth of electricity each day. The energy consumption of these systems has risen as the prices of virtual currencies have skyrocketed, leading to a vigorous debate among Bitcoin and Ethereum enthusiasts about burning so much electricity. The creator of Ethereum, Vitalik Buterin, is leading an experiment with a more energy-efficient way to create tokens, in part because of his concern about the impact that the networks electricity use could have on global warming. But many virtual currency aficionados argue that the energy consumption is worth it for the grander cause of securing the Bitcoin and Ethereum networks and making a new kind of financial infrastructure, free from the meddling of banks or governments. The electricity usage is really essential, said Peter Van Valkenburgh, the director of research at Co Continue reading >>

Bitcoin Energy Use In Iceland Set To Overtake Homes, Says Local Firm

Bitcoin Energy Use In Iceland Set To Overtake Homes, Says Local Firm

Bitcoin energy use in Iceland set to overtake homes, says local firm These are external links and will open in a new window Image caption Nearly 100% of energy in Iceland comes from renewable sources Iceland is facing an "exponential" rise in Bitcoin mining that is gobbling up power resources, a spokesman for Icelandic energy firm HS Orka has said. This year, electricity use at Bitcoin mining data centres is likely to exceed that of all Iceland's homes, according to Johann Snorri Sigurbergsson. He said many potential customers were keen to get in on the act. "If all these projects are realised, we won't have enough energy for it," he told the BBC. Mr Sigurbergsson's calculations were first reported by the Associated Press. Iceland has a small population, of around 340,000 people. But in recent years it has seen a marked increase in the number of new data centres, often built by firms wishing to tout green credentials. Nearly 100% of energy in Iceland comes from renewable sources. Bitcoin mining refers to the work done by computers connected to the global Bitcoin network. These computers solve complex mathematical problems - a process that in turn validates transactions between users of the crypto-currency. The computers that do this validation work receive small Bitcoin rewards for their trouble, making it a lucrative exercise, especially when done at a large scale. "What we're seeing now is... you can almost call it exponential growth, I think, in the [energy] consumption of data centres," said Mr Sigurbergsson. He added that he expects Bitcoin mining operations will use around 840 gigawatt hours of electricity to supply data centre computers and cooling systems, for example. He estimated that the county's homes, in contrast, use around 700 gigawatt hours every year. Continue reading >>

Bitcoin Mining Uses More Energy Than Tesla And Electric Cars | Fortune

Bitcoin Mining Uses More Energy Than Tesla And Electric Cars | Fortune

As Bitcoins price has soared , so too has the energy consumption to produce itto the point that Bitcoin mining now guzzles more electricity than all the electric cars in the world. In 2018, Bitcoins power demand is set to more than triple, consuming as much energy in a year as the entire nation of Argentina, according to a new report by Morgan Stanley (ms) . The banks analysts forecast that Bitcoin mining could use up more than 125 terawatt hours of electricity this year, a level electric vehicles globally wont reach until 2025. Last year, Bitcoin consumed 36 terawatt hours of energyas much as the country of Qatar, Morgan Stanley estimated in a research note published Wednesday. By comparison, all the Tesla (tsla) cars on the road (about 280,000 at the end of 2017, according to company statistics) likely used less than 1.3 terawatt hours of electricity combined for the year, a Fortune analysis found. The analysis assumed each car drove 15,000 milesroughly the national averageat a rate of 30 kilowatt hours of electricity per 100 miles, based on the median mileage rate for Tesla Model 3 and Model S vehicles, according to figures reported to the U.S. Environmental Protection Agency . That means it cost 29 times as much energy to produce Bitcoins last year as it did to power all the Tesla cars driving today. Thats freaking insane, wrote one person, going by the username Frank99, who posted a similar calculation on Teslas online discussion forum . Global energy consumption for all electric cars was about 6 terawatt hours in 2016. The reason Bitcoin mining consumes so much electricity is that producing each new Bitcoin requires solving a complex mathematical puzzle, through a cryptographic process performed by high-powered computers. The mining computations serve to verify B Continue reading >>

Bitcoin And Energy Consumption - Rebuttals : Bitcoin

Bitcoin And Energy Consumption - Rebuttals : Bitcoin

Andreas Antonopolous was featured on a CaSE podcast . At around -00:15:00, he provides a great response about energy consumption in Bitcoin. Clearly, Bitcoin is useful to some people. Judgements about whether or not something is wasted is best left to those using it. We don't end up with a good society if we start deciding for other people what is useful and what is not. To people who value censorship-resistance, neutrality, global access, completely decentralised system of currency with no geopolitical attachments, Bitcoin is a very useful application. Some would argue it is the most useful application in the 21st century. You can't do the security of Bitcoin without the investment in energy. To those who say you can, they are saying that you can get something of value out of nothing. There's a reason why the security of reason costs that much in terms of energy; if you do it for less, it's less secure. If it's less secure, you won't have a valuable network. The energy in Bitcoin is not wasted - it's used to make the network secure without central authority. No one has demonstrated at scale an alternative. There is a lot of complexity in using an intrinsic currency as stake for the security of the same currency. The game theory gets very complicated. Proof of Work is straightforward: you spend resources on energy in order to secure the virtual asset. If you decide to fuck it up, not only do you lose the value of the virtual asset, but you also spent money on energy that you are not going to get back. This creates a level of grounding. This is the primary basis on which Bitcoin achieves immutability; the idea that it is as computationally expensive to re-write the ledger for 3 days as the amount of energy you spent to write the ledger the first time for 3 days. It is o Continue reading >>

Bitcoins Energy Consumption Overblown?

Bitcoins Energy Consumption Overblown?

Founder @Masi Digital Ventures, All things Blockchain The mainstream media LOVES to shame Bitcoin mining for using more energy than Denmark, but contrary to popular belief, its still less than 1% of the total energy used by the United States. Media, bank executives, and misinformed individuals love spreading any type of fear, uncertainty, and doubt about Bitcoin at any opportunity. This is just awful and irresponsible. Blockchain technology/Bitcoin is the most innovative invention since the creation of the internet and the understanding of this technology continues to be convoluted due to the circulation of incorrect information. The majority of people fail to understand that we are witnessing the most incredible phenomena right before our eyes, for the first time in the civilized world, we are seeing the separation of state and money. Remember, if innovation and change were easy it would happen quietly. I plan to show you not only how wrong the media is about Bitcoins energy usage, but how other widely accepted practices expend much more energy than Bitcoin. The Overarching Design of BitcoinMining: To start, Bitcoin mining is just the process that transactions are verified and added to the public ledger, known as the blockchain. Miners, or computers, are rewarded with Bitcoins for verifying and securing the network. The mining process involves compiling transactions into blocks and trying to solve a difficult puzzle. The participant, or computer, that solves the puzzle first gets to place the next block on the blockchain and claim their Bitcoin, or block reward. Here is an important part, the block reward is halved roughly every 4 years, with the current block reward at 12.5 Bitcoins. This diminishing block reward will continue until all 21 million Bitcoins are releas Continue reading >>

Let's Talk About Bitcoin's Insane Energy Consumption

Let's Talk About Bitcoin's Insane Energy Consumption

Cryptocurrency fever is heating up. Even the less-than-legitimate websites that hawk opportunities to buy the latest coin are struggling to keep up with its price. Whatever societal or technological value blockchain technology may have in the long run, its hard to deny that the market is filled with speculators . In the midst of this fever, its very difficult to come up with rational assessments. If youre a cryptocurrency enthusiast, people assume that you stand to gain financially from pumping up the price. If youre against it, proponents will accuse you of sour grapes: you regret the missed opportunity to buy in at a low price, and youre hoping that the price will crash out of spite. Or perhaps you just have insufficient imagination to understand the revolutionary potential of the blockchain. The cynics say tulip fever and speculation bubble; the enthusiasts say HODL and fiat is dead. Investors argue that Bitcoins apparent lack of an intrinsic value beyond what people are willing to pay for it is really just the same flaw that gold, or fiat currency, has. Cynics argue that the whole thing is one vast pump-and-dump scheme , especially when it comes to the more obscure coins. If you think thats a conspiracy theory, you should see some of the others out there . Personally, I bow at the altar of the Gartner Technological Hype Cycle . It seems obvious that blockchain technology is extremely overhyped when companies can simply change their names to include the word blockchain and enjoy a bump in share price of up to 200 percentwithout any real indication of how a company that makes iced tea is going to leverage the incredible power of cryptographic ledgers to its advantage. Blockchain technology may well be the next internet, doing for transactions and record-keeping what Continue reading >>

Bitcoin Mining's Energy Use Won't Eat The World - If Prices Stay Below 19% Annual Growth

Bitcoin Mining's Energy Use Won't Eat The World - If Prices Stay Below 19% Annual Growth

Bitcoin Mining's Energy Use Won't Eat The World - If Prices Stay Below 19% Annual Growth Eric Gimon is a Senior Fellow forEnergy Innovation, and works on the firm's America's Power Plan project. The crypto-currency Bitcoin is creating near hyperventilation among reporters, but not because of its meteoric rise in value. While speculative bubbles are no surprise to even the most casual student of history, no tulip or Beanie Baby craze ever created such a concomitant surge in energy use: If Bitcoin were a country it would rank 61st in global energy consumption , and by one account , in 2020 it could use more electricity than the entire world uses today. Yet while all Bitcoin growth metrics are in a clearly unstainable red zone pointing to an imminent burst of its value bubble ( perhaps already happening ), Bitcoin and similar crypto-currencies have plenty of room for energy demand growth without eating the world as long as they remain within a perfectly reasonable green zone of about 19% growth per year. The value of a single Bitcoin has undergone exponential growth from $430 in early 2016 to peak at almost $20,000 last month (prices have crashed to around $11,000 today). This increase in Bitcoin value has driven more and more mining activity, where computer processing speed is devoted to Bitcoin transactions, mostly in China. According to the Bitcoin Energy Consumption Index , current mining operations consume somewhere around 4 gigawatts (GW), up from about 1 GW in 2017 (1 GW roughly equals the full output of a nuclear generator). Average Bitcoin price across major exchanges, Feb 2017-Jan 2018 More detailed estimates estimate somewhat lower figures, but Bitcoin mining has basically gone from consuming the full output of a big power plant to consuming the equivalent of a Continue reading >>

Bitcoins Price Crashed, But Its Still Devouring An Obscene Amount Of Energy

Bitcoins Price Crashed, But Its Still Devouring An Obscene Amount Of Energy

Bitcoins price crashed, but its still devouring an obscene amount of energy Electricity consumption from Bitcoin rose to a record high of 47 terawatt-hours this week. This is not what an actual bitcoin looks like. Bitcoin is plummeting, with the price of a coin falling from a December high of $19,500 to $8,242 as of Tuesday morning. The crash came a day after Wall Street got its own long-overdue correction: The Dow Jones Industrial Average fell by 4.6 percent on Monday, the worst point drop for the index ever. Bitcoins peaks and valleys over the last six months Last years soaring Bitcoin prices led to a huge speculation frenzy , but now coin holders are rattled . Facebook is banning ads promoting Bitcoin and other cryptocurrencies, while banks including Citigroup, Bank of America, Capital One, and Discover have stopped Bitcoin purchases on credit. Some Bitcoin enthusiasts and market analysts believe this is the start of a true crash , including Nouriel Roubini, a professor at New York University who is one of the worlds most well-known economists. As expected Bitcoin now crashes below $6000. Now the $5K handle is reached. And the US Congressional Hearing on Crypto-Scams is still a day away. HODL nuts will hold their melting Bitcoins all the way down to ZERO while scammers and whales dump and run... Nouriel Roubini (@Nouriel) February 6, 2018 (HODL is Bitcoin lingo for hold on for dear life, referring to coin holders that dont want to sell in hopes of a rebound.) But others say the current decline is a typical seasonal event. Here I tweet again the course of Bitcoin the last 4 years. January: Bitcoin went down the last 4 years. February: Bitcoin went up in mid-February. Daagle [Hashgraph vs. Blockchain] (@Daagle23) February 3, 2018 The drop in price, though, hasnt had m Continue reading >>

Bitcoin Energy Consumption Index

Bitcoin Energy Consumption Index

Bitcoin's current estimated annual electricity consumption* (TWh) Country closest to Bitcoin in terms of electricity consumption Estimated electricity used over the previous day (KWh) Total Network Hashrate in PH/s (1,000,000 GH/s) Electricity consumed per transaction (KWh) Number of U.S. households that could be powered by Bitcoin Number of U.S. households powered for 1 day by the electricity consumed for a single transaction Bitcoin's electricity consumption as a percentage of the world's electricity consumption Carbon footprint per transaction (kg of CO2) *The assumptions underlying this energy consumption estimate can be found here . Ever since its inception Bitcoins trust-minimizing consensus has been enabled by its proof-of-work algorithm. The machines performing the work are consuming huge amounts of energy while doing so. The Bitcoin Energy Consumption Index was created to provide insight into this amount, and raise awareness on the unsustainability of the proof-of-work algorithm. Note that the Index contains the aggregate of Bitcoin and Bitcoin Cash. A separate index was created for Ethereum, which can be found here . New sets of transactions (blocks) are added to Bitcoins blockchain roughly every 10 minutes by so-called miners. While working on the blockchain these miners arent required to trust each other. The only thing miners have to trust is the code that runs Bitcoin. The code includes several rules to validate new transactions. For example, a transaction can only be valid if the sender actually owns the sent amount. Every miner individually confirms whether transactions adhere to these rules, eliminating the need to trust other miners. The trick is to get all miners to agree on the same history of transactions. Every miner in the network is constantly t Continue reading >>

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