The Unseen Costs of Crypto-Currency Bitcoin Mining

When bitcoin was first released in 2009 as the first crypto-currency, the identified founder, Satoshi Nakamoto could not foresee the impact of bitcoin mining and its energy consumption tremendous growth. With Sebastian Dettman, an analyst and researcher, claims that by 2020, bitcoin mining operations would consume as much electricity as required to power a country like Denmark. While crypto-currency is strongly growing into an eloquent industry, analysts are predicting such kind of staggering cost of energy. In the end, it is worth it. The right answer to this question is whether you are the lucky early miner before the currency is full blown.

With the associated energy cost of managing a lucrative crypto-currency mining maneuver almost outweighing the end-result of de-hashing systems. We can assume that this craze will run aground and tank outright eventually. For nearly two years, industry outsiders have claimed that the bitcoin economy will collapse at the end because it is unsustainable in a mini-meltdown. Consumer confidence at this point will determine the value of mined coins. While bitcoins are established as a crypto-currency de facto, the gold to a silver competitor and their established outlets now accept bitcoin currency as much as they do with solid cash. There is a positive future for the crypto-currency system if the miners will reduce their associated costs with large-scale mining.

Bitcoins will half the garnered rewards for crypto-currency functions at the moment. This action will have a significant impact on the energy costs associated with the mining of bitcoins. In the next five years, we might see the stages of collapse due to increased cost of energy for mining the coins. The market will determine if the currency will remain or not. If they determine that it will continue to be, then the cost of mining energy will tremendously increase outright.

Written by: Andrew Johnson

Andrew Johnson has been reporting for Blog.ca for more than 8 years. He studied journalism at UGC and has published two books on how journalism influences the world.

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