There is no doubt that Bitcoin is positioned more and more in the public's preference every day. Their rapid growth may be a reason for this. However, at present the use of Bitcoin is being considered an environmental problem. The generation of these virtual currencies has an energy consumption similar to that consumed by 150 countries combined. This according to figures from recent studies.
High power consumption: one more problem
The English company Power Compare was commissioned to conduct a study of Bitcoin's electricity consumption. The result obtained was a high level of energy expenditure. This compared to the movement of countries like Ireland to North Korea. If we go to the African continent, the consumption expenditure of bitcoin generation could be equal to countries like South Africa, Egypt and Algeria. This means a higher energy consumption than the Central African countries.
Since its inception, Bitcoin has had many adversaries. The currency is completely free because it does not depend on an institution or central bank, that has been its main obstacle to legalization. Now Bitcoin has a new enemy. It is already considered that in less than 5 years, the company will consume an equivalent to the energy expenditure of all the countries in the world.
The acceptance of Bitcoin trembles again
The English company calculated that the Bitcoin generation cost equals 29.05 TWh. This is equivalent to 0.15% of the energy needed to cover the basic needs of the entire planet. Additionally, the cost of energy increases every month between 20% to 30%. A reason to be alarmed by the impact it could generate. The English company estimates that within a year the Bitcoin electricity consumption could be higher than that of the whole United Kingdom. In a few years more than the whole world.
Countries that have begun to accept cryptocurrencies as a means of parallel exchange have shown a high increase in their energy consumption. In this case we have Spain among the top 20 countries with the highest energy expenditure (which equals 234 TWh). Of this figure, 12% is only generated by the creation of Bitcoins and other cryptocurrencies.
In addition to this, Power Compare released other deductions. By joining all the electricity consumption of the various countries with high mining, the sum of this coparía the 60th place in the ranking of countries with higher energy expenditure. A place that is currently occupied by countries such as Bulgaria and Morocco.
Certainly the production of cryptocurrencies generates a high energy cost. However, it is well known that a large part of the profits are directed towards the payment of electric services. Even so the profit of the crypto-cents continues to be responsible for what attracts more investors each day. However the hard fight for its legality is added to reduce the high energy consumption. Activity that can result in an environmental impact not desired by any nation in the world.
Do you think the rise of proof of stake coins will make this a non-issue? Even if PoW continues to dominate, the free market should be able to solve the problem by either increased electric costs for higher users or innovation on the renewable power front.