The Limited Times

Now you can see non-English news...

The production of bitcoins already consumes more annual energy than all of Argentina

2021-02-10T17:25:20.501Z


It is 'mined', mainly, with computers with powerful video cards. 02/10/2021 10:03 Clarín.com Technology Updated 02/10/2021 10:03 According to a study published by the University of Cambridge, the annual energy needed to produce bitcoins already exceeds that of all Argentina and goes for that of Norway. The study, published by the “Cambridge Center for Alternative Finance, notes that bitcoin mining already consumes121.88 terawatts per year, while Argentina is


02/10/2021 10:03

  • Clarín.com

  • Technology

Updated 02/10/2021 10:03

According to a study published by the University of Cambridge, the annual energy needed to produce bitcoins

already exceeds that of all Argentina and goes for that of Norway.

The study, published by the “Cambridge Center for Alternative Finance, notes that bitcoin mining already consumes

121.88 terawatts per year, while Argentina is at 121.

This happens because to "mine" -produce- bitcoins, an enormous amount of energy is needed for the computers that produce them.

Why so much?

Cryptocurrency mining is a job that relies on the constant verification of transactions, which is known as grouping transactions into blocks and adding them to a public record (the “

blockchain

”).

This work is rewarded, precisely, with bitcoins.

A bitcoin mining center in Keflavik, Iceland.

Reuters photo

That's where the enormous energy consumption comes in: the goal of adding individual blocks to this large chain demands a

resolution of

quite complex

logical-mathematical problems

.

And that is what requires

immense computing power

, which is currently done with

GPUs

(processors that have the video cards).

Under this scenario, a recurring theme has to do with the possible problems that this brings to the environment, and the University of Cambridge analyzes this impact.

"While terawatt-hours (TWh) are a standard unit used to measure electricity consumption, for some it may be difficult to put these figures into perspective without context," they warn from Cambridge.

"This section attempts to provide an unbiased and objective basis to help visitors independently assess the magnitude of bitcoin's electricity consumption and compare it

to other uses of electricity,

" they continue.

And they give these numbers:

Bitcoins mining.

Cambridge University Fountain

Of course, energy consumption is a problem beyond bitcoin, which Cambridge puts in relation to types of energy:

Bitcoins mining.

Cambridge University Fountain

“All comparisons are based on

our best estimate of the total electricity consumption of bitcoin

.

The comparisons listed are for illustrative purposes only and do not suggest that one type of electricity consumption can or should be substituted for another ”, they clarify.

It will surely be a debate for the coming years that, in some way, will have to be related to the amount of energy used to produce physical money as we know it and use it every day.

Bitcoin exceeded $ 48,000

The cryptocurrency broke another barrier.

Photo EFE

Bitcoin (BTC)

surpassed US $ 48,000 on Tuesday

and set a new record in its price after having surpassed, just a day earlier,

the barrier of US $ 40,000

, which again raised warnings about its possible overvaluation and the danger of investing from a highly volatile asset.

By mid-afternoon, the BTC had slightly deflated to settle at the $ 47,000 line, according to the Coinmarketcrap site, which meant an increase of

more than 10% in the last 24 hours and of almost 35% in the last week.

To this we must add that the cryptocurrency accumulates a growth of almost 313% in one year, compared to US $ 11,200 at the end of 2019;

and 65% since the beginning of 2021,

when it was trading at US $ 28,000.

SL


Source: clarin

All tech articles on 2021-02-10

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.