Bitcoin electricity: The Energy to Sustain Blockchain
Bitcoin electricity concerns are growing. Even though the value of the cryptocurrency has stumbled in recent months, the demand for energy-intensive mines remains.
Bitcoin and cryptocurrencies are the great gold rush of our current century, and crypto-mining has opened the door to a new industry. One country in particular has become one of the world’s top locations for cryptocurrency servers – Iceland.
Amid the positive promise of a growing sector in the economy comes the issue of bitcoin electricity supply. In fact, Iceland could soon face an energy shortage. The country’s servers now exceed the consumption of private energy users, and if Iceland continues to attract new companies investing in cryptocurrencies, energy producers are concerned that they won’t be able to keep up.
Although there are no recognised authoritative sources on cryptocurrency energy usage, estimates have claimed that:
- Bitcoin consumes 30 x more electricity than Tesla cars
- Bitcoin’s electricity usage is set to more than triple in 2018, consuming as much energy in a year as the entire nation of Argentina
- In 2017, Bitcoin consumed 36 terawatt hours of energy—as much as the country of Qatar
Why is bitcoin electricity use so intensive?
Every cryptocurrency relies on a ‘blockchain’ platform which allows for the trade of digital currencies. Because there is no single network authorised to monitor payments, any transaction involves a massive number of mathematical calculations, and thus server capacity. This results in high electricity demand, which is embedded into the core of cryptocurrency mining.
In fact, offset against the costs of mining equipment and company profits, electricity makes up 60% of total mining revenue.
Why Iceland for bitcoin electricity?
Because crypto-mining is so energy-intensive, miners need access to power that is both reliable and cheap. The energy in Iceland meets these criteria, but for how long? The future of bitcoin and other cryptocurrencies depends on how cost-effective it is to produce.
The Smarter Business Solution
Smarter Business is one of UK’s biggest energy brokers in the UK and can help your crypto mining company with source cost-effective, reliable energy. Contact us today for all your computing requirement needs.