How much energy does Crypto mining use?

How much energy does Crypto mining use?

According to Forbes, bitcoin mining is consuming as much energy as Ireland. As you can imagine, this sounds insane, since a simple activity like this would potentially eat up a ton of energy. And it actually does. But the challenge here is that no one is actually working on a way to make mining consume less energy. If anything, we are encouraged to invest in even more bitcoin mining machines so we can get more money.

There are no specific figures regarding the bitcoin mining consumption, but the yearly estimate is around 20000 GW hours of electricity. To put things into perspective, this is 0.1% of the total energy consumption in the entire world. Sure, it’s not a large number, but consider that this is only making money for select people that use mining machines.

Speaking of that, mining solutions like the Antminer just crunch algorithms to lengthen the blockchain. The regular Antminer has a load of 1.5 KW, which is enough to power a fridge and a TV in your home. Even running such a unit for an entire year will give you 0.85 bitcoin, and the cost will be 15000 KW hours. As a whole, this will be anything from $600 to almost $2000, depending on where you live. Sure, based on the bitcoin pricing you are still making a profit, but the problem is that you consume a lot of energy that would be better spent otherwise.

But even if the energy requirements for something like this are staggering, there are plenty of solutions. Some companies such as HIVE are setting up mining facilities in places where the geothermal power and hydropower are cheaper than anywhere else. In addition, they are investing in renewable energy, which is a good thing at least for the time being.

The issue here is that most mining solutions are not energy-efficient. That’s obviously a huge problem because you can rarely find a good and reliable way of dealing with stuff like this. We expect renewable energy to bring in great solutions for this sector, but for the time being this is not the ultimate solution that a lot of people want to see or use. It’s going to get better in the long term, but that will most likely happen when bitcoins and other cryptocurrencies will end up being mainstream. And that may take a few more years at the very least.

For the time being, the cryptocurrency mining costs are pretty high, as you can see. And the energy consumption is going through the roof. But as long as there is a profit to be made, people are going to focus on mining cryptocurrency so they can get a piece of the action and eventually turn a profit. The only challenge here is that crypto prices tend to be volatile, so it’s extremely hard for a lot of people to identify the right way of making money with this in the long term!