Bitcoin Mining Cost Reach High

Bitcoin is a Digital mine able Crypto Currency . Mining For This Digital Crypto Currency Cost More than Twice of the ammount Cost on Mining Gold.

The amount of energy required to mine one dollar worth of bitcoin is more than twice that required to mine the same value of copper, gold or platinum, according to a new paper, suggesting that the virtual work that underpins bitcoin, ethereum and similar projects is more similar to real mining than anyone intended.

Mining is the name for the process by which blockchains, such as those that underpin cryptocurrencies, are regulated and verified. In bitcoin’s case, for instance, the currency is backed by “miners” due to the absence of a centralised authority confirming transactions. These miners effectively enter a competition to waste the most electricity possible by doing pointless arithmetic quintillions of times a second. One lucky competitor wins both a reward, worth about eighty thousand dollars in bitcoin and the right to verify all transactions made in the last 10 minutes.

The rewards may be virtual but the energy cost is real. Previous attempts to calculate how much electricity is burned to power the bitcoin network.Still the largest blockchain in existence, have focused on looking at the size of the network in aggregate.

In the long term for the environmental impact of cryptocurrencies will vary not only with their market value, but also according to the adoption of new technologies. The Ethereum project, for instance, has expressed an interest in moving from the energy intensive proof of work to a relatively untested alternative proof of stake