There’s more: bloomberg.com/amp/news/arti … ssion=true
Stop worrying about how much energy bitcoin uses
Electricity is 90 percent of the cost to mine bitcoin. As such, bitcoin mining uses an exorbitant amount of power: somewhere between an estimated 30 terawatt hours alone in 2017 alone. That’s as much electricity as it takes to power the entire nation of Ireland in one year.
Indeed, this is a lot, but not exorbitant. Banking consumes an estimated 100 terawatts of power annually. If bitcoin technology were to mature by more than 100 times its current market size, it would still equal only 2 percent of all energy consumption.
And the amount of Bitcoin mined halves ever four years (next halvening is 2020) so this’ll also reduce energy consumption. Far too much is made of the energy consumption of BTC.
In Bitcoin mining, price follows hash power and vice-versa like chicken and egg. The halvening will effectively halve the mining reward per block. In the past these events haven’t had much significance on the dollar value of the overall reward per block. However, because fewer coins are rewarded post halvening, the dollar price per Bitcoin effectively doubles (not immediately, in reality the dollar price rises over the prior months in anticipation of the halvening event).
So in all, the longer that Bitcoin survives, one would expect hash power to increase exponentially. However, I agree that the electricity usage problem is hugely overblown and is used by Bitcoin sceptics as another excuse to bash the technology through misinformation. In reality, as Bitcoin gets harder to mine because global collective hash power is surging, mining ops are increasingly migrating to renewable sources. e.g. hydroelectric in Canada and geothermal in Iceland (one of world’s largest mining facilities is there already). This is market forces at work, driving the requirement for more energy efficient mining, just as you would expect over the long-run.
There was a bitcoin rush in an area of Washington State with cheap hydroelectricity. It went insane this time last year.
1500 MW is around 1/3 of peak demand in all of Ireland.
Not if you’re using someone else’s electricity.
Is there actually a profit in “mining”, or are you just wasting energy?
Depends on electricity cost and value of the coin.
Bitcoin dropped around 30% in value in the last week, any ideas what happened?
There’s a 3 way fork being argued over in Bitcoin Cash. That’s one reason I hear touted.
Probably the bitcoin cash hard fork spooked a lot of folks .There are two major groups duking it out . Not directly related to bitcoin but they may be spending bitcoin to fund their hashwar.
It was unusually stable for a few months prior.
Touching $3800 now
Are they in negative equity (energy cost to “mint”) yet?
Saw something about $4k being the threshold for it being profitable to mine, be interesting to know if that is a reliable figure.
Assuming the miners can no longer operate, what are the implications ?
I think the “target” value will not go up as quickly if hashing power in the network decreases, so as to maintain the ten minute block mining rate.
Electricity generator’s will see aa drop in demand for starters.
They’ve been talking about miner support collapsing since bitcoin was 160 USD. It’s a non issue. The market will adjust.
But that’s my question - how will it adjust ?
Does less commercial mining mean less bitcoin or do they just get allocated to private miners (sorry, I know little how it operates).
So do you expect the price to increase or decrease if commercial mining becomes uneconomical ?