he Bitcoin boom has forced the mining sector to try to keep pace, since the energy and effort invested in single-currency mining pay more and more . However, it is also causing the mining sector to go into an overload looking for the elusive prize.
One way that miners have tried to gain an additional advantage in the game is to try to reduce their energy costs. It is good for miners, for Bitcoin and for the environment if energy consumption plummets.
The cost of a Bitcoin
The Bitcoin mining industry consumes 22.5 TWh of energy per year, equivalent to 13,239,916 barrels of oil. With 12.5 Bitcoins being mined every 10 minutes , that means that the average energy cost of a Bitcoin equals 20 barrels of oil.
It seems an exaggerated amount of oil to be spent on extracting a digital currency, but when you consider the value of a currency, which is now valued at more than 100 barrels of oil , it becomes understandable.
However, despite the lucrative nature of everything, there are serious environmental implications for the Bitcoin mining sector. Consequently, if the boom continues, there should be plans to try to keep energy costs low.
To put this in perspective, the total energy consumption of Bitcoin mining activities in the world is more than 40 times greater than that required to power the entire Visa network.
Kings of cheap electricity
It is not surprising to find that the countries that have been seen as the superpowers of Bitcoin mining have been those that have had cheap electricity or have worked to achieve it.
China has long been a Bitcoin mining center, since it has some of the cheapest electricity, however, with its position on the Bitcoin exchange, Russia is intervening.
There were plans for the Russian subsidy for Bitcoin mining , but the socialist country is heading towards China’s route in regards to its sentiment towards Bitcoin.
This has led other countries to become mining powers.
Land of ice and mining
The future of mining seems to be much more ecological and much more efficient and economical. Many mining companies are looking for places like Iceland and Kazakhstan , where temperatures are lower and there is no need to spend money on refrigeration.
In addition, there have been incursions into the use of sustainable and renewable energy sources to boost mining operations. These are beneficial for the plant and for the miners, since energy is much cheaper in many parts of the world.