Follow Bitcoinist on social media bitcoin mining rig comparison of presidential candidates keep up-to-date with the latest news! If you continue to use this site we will assume that you are happy with it. Bitcoin Futures Market: Reason For Recent Price Fall?
2017 has been an explosive year for cryptocurrency. Increased adoption means stimulated growth, but this growth comes at a price. Under Bitcoin’s Proof of Work algorithm, miners compete with each other to process transactions into the blockchain’s public ledger, and the first miner to finish the candidate block receives Bitcoin as a block reward. Every 2,016 blocks, Bitcoin undergoes a difficulty adjustment to keep the transaction rate balanced. Within Bitcoin’s growth lies the problem: as more blocks are created and Bitcoin’s difficulty increases, it will take more hashing power to verify transactions.
In order to increase this hashing power, miners have to consume more energy to make sure their computers are working fast enough to keep up with other miners. Miners use up so much energy, in fact, that Bitcoin mining now accounts for 0. As we previously noted, Bitcoin’s growth is synonymous with this increase in energy consumption. Russia, India, and Japan follow suit as the next three largest consumers. When we compare Bitcoin’s energy consumption to other forms of financial transactions, the comparison puts Bitcoin’s energy expenses in an unfavorable perspective. Bitcoin’s mining power could consume more energy than the whole of the United States by July 2019.