Miners have planned to gain the edge by cutting on energy costs. This move by the mining bitcoins sector does well for the environment.
The mining Bitcoins’ industry consumes 22.5 TWh of energy annually, equal to 13,239,916 oil barrels. For every 10 minutes 12.5 bitcoins are being mined, that means the average energy cost of one Bitcoin is equal to 20 oil barrels.
From the math above it looks as exorbitant amounts of oil is being spent on mining cryptocurrency, but it’s understood when the coin value is considered. One Bitcoin is now priced at 100 oil barrels
Though this looks well-paid but there are serious environmental threats for the Bitcoin mining industry.
This can be understood as the total energy consumption of the world’s Bitcoin mining is more than 40 times of energy required to power the entire Visa network.
It’s expected that countries looked upon as Bitcoin giants are those having cheap electricity or working for it. Since long time China is a Bitcoin mining center owing to its cheap electricity. Slowly Russia is also stepping in to become mining powerhouse. This leads the way for other nations to join the Bitcoin mining league.
Land of ice and Mining:
The future of mining Bitcoins looks promising as more countries are joining the mining group. Many of the mining companies are looking to coldest places like Iceland and Kazakhstan, so as to reduce spend on cooling.
Some of the mining companies are venturing into using ecological and renewable energy sources for power mining operations. This proves to be cost effective technique for the miners as power is more economical in most of the nations.