Green Bitcoin: the impact and importance of energy use for PoW
In the whitepaper of Bitcoin, Satoshi Nakamoto, the founder of bitcoin, described the bitcoin mining process. He described the mining process as the only way to mint new bitcoins, and this would take place through the proof-of-work concept. To mine new coins and complete the verification and validation of bitcoin transactions, the computers were required to solve complicated mathematical equations. There were hardly any miners in the early days of bitcoin; however, this thing changed in a few years when people understood this digital currency.
Competition in the mining process increased, which results in increased cost of machines and energy required for competing. Most importantly, the energy demand exploded along with the demand for new machines needed to process transactions and cooling. Only after a few years, the energy demand grew more to mine bitcoins, and as per the data, the energy demand has reached 116.71 TWh per year. Let’s glance at the real impact of bitcoin mining on the environment and learn the importance of energy use.
Usage of Energy in Bitcoin Mining Process
Some central authorities and influencers emerged on social media stating the suspected increase in coal usage and other fossil fuel energy required to mine bitcoin. Coal is an important energy source in China, but according to research done by https://www.globenewswire.com, one major energy source is hydropower. It has been surveyed that around 65% of hashers use hydroelectric energy for their mining operations.
CBECI stated that around 25,085 TWh of energy is produced every year, out of which around 20,865 is only consumed, which means that around 16.75% of energy is wasted. Bitcoin mining represents the energy expenditure of 0.47% of total energy producers, whereas 0.54% of total electricity is consumed across the world.
The goal of Green Bitcoin
The energy consumed by the mining process will keep on increasing in coming years as the working is linked to computing power. Crypto mining companies should now focus on the green bitcoin network and do their part by pushing bitcoin production with less usage of fossil fuels and purchasing carbon credit tokens. It would be unfair to call the bitcoin miners degraders of the environment. Bitcoin is a global currency, and everyone must remember that cryptocurrencies are developed to offer freedom to underprivileged individuals and augment the quality of life.