As we said in our guide, Bitcoin is found be an extensive mining process. It requires heaps of energy, which is often draining (financially) for people who intent to mine.
Due to bitcoin and other virtual currencies becoming more popular, more and more cryptocurrency farms are becoming apparent. As litecoin, dogecoin and other digital currencies surge in price the desire to mine will become greater and greater.
Currently, Bitcoin mining is an elite operation where only people with large expendable recourses can partake. Mining the currency is like a car factory, in the sense that it uses up colossal amounts of electricity. But due to the price of BTC being over $11,000 the price of mining is in proportion to the price of BTC.
Bitcoin Uses More Power Than Most African Countries
Power Compare, a UK based electricity company has stated that the price of Bitcoin has caused a direct usage increase in electricity. This increase in electrical usage can be attributed to large mining setups.
The annual Bitcoin electrical consumption for this year has reached 31 terawatt-hours. This electricity costs $9.7 billion USD yearly, according to DigiConomist.
What’s really shocking is that despite it being a relatively new currency, Bitcoin mining contributes to 0.13% of the worlds total energy usage. This ranks BTC mining as the 61st highest electricity consumer in the world.
The price of the coin increased by so much in November that the power usage of mining increased by a whopping 30%. So, in theory as the price of Bitcoin increases, mining should be more frequent.. causing more power consumption.
If the price of Bitcoin rises at the rate is it now, then mining will be consuming 100% of the world’s electricity by 2020. But according to data analysts the price will level out way before then.
The diagram above shows the amount of power BTC mining uses in comparison to countries around the world. You will see that most African countries do not use as much power as BTC mining does.
Also, South Korean Prime Minister thinks that Bitcoin is causing crime. What do you think?