You must have heard the name of Bitcoin, it is a digital currency that has created the fastest value. Bitcoin, invented in 2008, is today the world's most expensive currency. But there is one thing more important than that which is very noticeable. A study at Cambridge University states that the amount of electricity spent in mining for bitcoin is used in Argentina.
Bitcoin price reduced due to electricity crisis in China
According to the data website CoinMarketCap, the price of bitcoin has dropped due to the power failure in the Xinjiang area of China. For this reason, its price has reduced already.
After all, how much electricity does bitcoin consume?
The electricity spent in making bitcoins can be used to meet the electricity consumption of a large state like Mumbai. According to a study by Dutch economist Alex de Vries, bitcoin produces 38.10 MT (million tons) of carbon footprint every year.
On the other hand, the carbon footprint of Mumbai is around 32 MT and that of Bangalore is 21.50 MT. Microsoft co-founder Bill Gates said in an interview recently that bitcoin does not have as much electricity as it costs per transaction. Bitcoin's mining consumes 121.36 terawatt-hours of electricity in a full year, so its price may fall significantly in the coming time.
Tesla decided to invest in bitcoin
In February, Bitcoin price touched a record of $ 48,000. The statement said that it has bought 1.5 billion dollars worth of bitcoins and is ready to accept it as a payment in the future. This is a benefit for mining-related businesses as the consumption of machines will increase. Tesla's decision to invest in Bitcoin weakens its environment.
According to Cambridge's research team, as prices go up, energy consumption will increase. Bitcoin consumes a lot of electricity. Its design is the same, nothing is going to change in it. While Bitcoin will not cost less, Bitcoin will continue to consume electricity similarly.
You will be surprised to know that the electricity used in Bitcoin can run all-electric kettles in the United Kingdom for the next 27 years.
What is bitcoin mining?
Transactions are carried forward using computing power in bitcoin mining. After securing the network, the number of people connected to it is synchronized. The mining of bitcoins is carried out with the help of cryptography. Its mining is limited and as its mining increases, it reduces profits.
Why is it difficult to earn profits
Bitcoin is used in the same way as other currencies of the world are. Its price also keeps on decreasing. It is completely dependent on demand and supply. The game of bitcoin rests on mining. According to protocol, they can be mined only in limited quantities. As the number of miners increases, it becomes difficult to earn profits from bitcoin.