Over the last years, Bitcoin energy consumption has been one of the main topics discussed in the cryptocurrency market. Bitcoin has been growing as a store of value and as a digital asset against inflationary currencies from all over the world. However, those that are against it use energy consumption as one of the main criticism of it.
In the next sections, we are going to share some context on that matter. We will also explain why Bitcoin consumes less contaminating energy than most people believe and why the Proof-of-Work (PoW) consensus algorithm makes BTC more secure.
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Bitcoin consumes a lot of energy. Indeed, at the moment, Bitcoin consumes more energy than countries such as Argentina or Norway. This shows that the Bitcoin network has a large impact on the energy market.
This energy is used by miners to process transactions through ASIC miners. ASIC miners are the most advanced Bitcoin mining devices that make it easier for miners to confirm the transactions processed by the network.
Bitcoin miners could be small investors that purchased a few ASIC miners or large companies with thousands of ASIC miners. The energy used to process transactions keeps the network secure. It is difficult for other miners and attackers to do a 51% attack.
Indeed, it would be necessary for an attacker to have more energy than a country such as Norway or Ukraine, which is definitely difficult. Indeed, if Ukraine as a country decides to attack the Bitcoin network it would not be able to do so because it would require all of its energy available just to double-spend one of the BTC transactions.
The answer to the question “Does Bitcoin Consume a Lot of Energy?” is clearly yes. However, there are some things we should take into consideration such as the benefits behind the Bitcoin network and which are the energy sources used by BTC miners.
Several miners are connected to not contaminating energy sources such as hydroelectric power plants or solar panels. The most efficient miners are able to use the excess of energy produced by these industries and use them to mine Bitcoin rather than relying on coal or contaminating sources.
At the same time, there are some contaminating industries that require gas extraction. In order to do so, they free contaminating gases from the atmosphere. These gases are literally unusable for other types of things. Due to this reason, they are literally expelled into the atmosphere.
However, some industries have been recently mining Bitcoin with these contaminating gases that before were not used for anything valuable. Nowadays, they can be easily used to mine Bitcoin and generate not only extra income for the company but it is also used to protect the Bitcoin network.
There are many benefits to the Bitcoin network that are worth taking into consideration. The first thing we should know is that when miners are protecting the Bitcoin network, they are protecting the first decentralized financial network in the world. Bitcoin is independent of central banks, governments and companies.
Users are able to send and receive transactions all over the world without relying on a centralized authority. This is something that people around the world couldn’t have before and that now they are able to have.
Additionally, it is impossible for centralized authorities to get access to the funds held in BTC. If Bitcoins are properly stored, it becomes impossible for centralized authorities to get access to them. In this way, we are able to protect our funds from confiscatory governments, specifically in developing countries where governments constrain individual and economic freedoms.
Furthermore, Bitcoin was the network that allowed other projects to grow and expand. It promoted the use of blockchain technology around the world, which drove innovation and permitted the creation of new industries such as decentralized finance (DeFi).
Bitcoin and digital assets are now a new market for investors from all over the world. Bitcoin is making it easier for individuals and companies to get access to money that cannot be confiscated and that offers a protection against the devaluation of fiat currencies from most of the countries.
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