Cryptocurrencies are now all set to take our online world by storm. Their popularity, use, advantages, and limitations are continuously increasing at a rapid rate. Bitcoin was the first-ever cryptocurrency that came to scale. It was launched in 2009 by “Satoshi Nakamoto”. However, his identity is still unknown. Since its launch, the cryptocurrency has risen to such prominence with the help of high-security blockchain technology that now it is providing an open-source alternative to government or institution-backed currencies like the US dollar.
Still, this cryptocurrency is continuing to operate on a stronger horizon with each day passing. This has proved to be a very rewarding opportunity for early investors and miners who followed the trend. They held onto their assets and now they are enjoying huge benefits many times over.
But, the focus here right now is on the fact that why this decentralized currency has become the topic of debate or a subject of argument over its environmental impact. All the energy consumption rising issues because of bitcoin mining have become the latest talk of the town. A lot of critics have said that cryptocurrency is an energy-consuming monster. While on the other hand, its supporters have contradicted this accusation by saying that it is less intensive in the terms of power consumption when compared with the current global energy consumers. These opposing views will be carefully studied in the next section.
Arguments On Bitcoin Mining Energy Consumption
Even several analysts from Cambridge University have shared almost the same perception as the critics. BBC has recently reported that bitcoin is using more electricity in a year as compared to the whole South American country, Argentina. Now talking about “bitcoin mining”, analysts have said that it is seriously a power-hungry process that involves heavy computer calculations for verifying the transactions. Furthermore, reports from several pieces of research have proved that this process consumes almost about 121.36 TWh (terawatt hours) per year and this number is not falling anytime soon unless the value of the currency falls someday. Yet again another report suggests that bitcoin uses more energy as compared to American airlines. Bank of America says that each $1 billion in inflows is equal to almost owning 1.2 million cars.
Talking About Elon Musk’s Affair
Elon Musk recently ended his affair with bitcoin a few months back. This happened because of the impact of bitcoin mining activities on global greenhouse gas emissions. He had a heavy argument over this topic in a debate. Musk’s company started taking payments in bitcoin in March. However, in May, 2 months after that, Tesla’s boss announced that his firm won’t be accepting payments in cryptocurrency anymore because of the rapidly increasing use of fossil fuels for mining bitcoin and the related concerns.
This comment had a great impact on the price of Bitcoin and it started decreasing. Still, the latest tweet from SpaceX’s central crooner shows some hope for Musk’s affair with bitcoin. It depends on bitcoin improving its use of renewable energy resources.