The rapid growth of Bitcoin has led to increased mining operations in the past few months as well. This resulted in a massive demand for energy consumption that some countries cannot easily provide.
Such increased need for electricity has led even to blackouts in some countries. For example, in Venezuela that is currently dealing with a financial crisis. Some citizens have turned to mining Bitcoins in order to receive an income and be able to survive and feed their families.
Bitcoin mining power consumption
According to Digiconomist analytics, the energy consumption from Bitcoin mining operations is near to the levels of the power usage of countries such as Denmark, Morocco, Serbia, and Oman.
Also, some countries rely on coal-fired power facilities as the main source of energy. In these countries, the high energy demand for Bitcoin mining results in high carbon footprint, which is harmful to the environment.
For instance, a single facility in China is using about 25,000 computers for the mining of the major digital currency. These computers consume approximately $40,000 worth of energy every day.
Eric Holthaus, a climate change advocate claims that the energy demand for Bitcoin mining will eventually overcome that of the available supply. He believes that until February 2020, the energy consumption of Bitcoin mining operations will be at the same level to the current worldwide consumption.
However, there are some alternative solutions to improve the high electricity consumption issues for Bitcoin mining. Some of them are:
- the adoption of the proof-of-stake mechanism,
- the production of more energy-efficient technologies for mining operations
- the upcoming introduction of the Lightning Network.