The above chart shows that Bitcoin mining is using more electricity than many smaller countries, including Ireland. At this rate of growth, Bitcoin mining will consume all the world’s electricity by 2020! This doesn’t even consider mining of altcoins either!
There are a few reasons why this won’t be the case, however:
- New technology in the form of ever more specialized ASIC miners is becoming more and more efficient, as Bitcoin miners need to keep electricity costs down to turn a profit.
- Crypto miners are increasingly large-scale operations that are able to use economies of scale to employ more efficient cooling and energy use than the average amateur miner. Check out this cool video of a mining farm:
- Much of mining is done in China, which is continuing to up standards on reducing wasteful energy usage and improving its electrical infrastructure. Not to mention that the government is threatening to crack down on mining.
What do you guys think? Is the massive electricity use of mining for Bitcoin or altcoins a problem? Will the proliferation of proof-of-stake coins eventually make mining obsolete?
For more information, check out our article on Seeking Alpha on this topic.
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