Why is bitcoin mining affecting our environment? Is it essential for the bitcoin network?
Bitcoin is one of the popular trading instruments and speculative investment assets amongst savvy investors. However, neither bitcoin is a trading instrument nor an investment asset. Bitcoin is a digital currency having a peer-to-peer network and blockchain, which makes it decentralized. Since bitcoin is a digital currency, the action of adding new bitcoins to existence is correspondingly digital.
Bitcoin mining is an action of verifying bitcoin transactions, and as the reward of verifying the transactions, miners get bitcoin as a block reward. The profitability of bitcoin mining is very uncertain, but bitcoin trading is profitable. If you want to get profitable results in your bitcoin trading venture, click here for more details. However, bitcoin mining is getting an exceeding extent of criticism nowadays due to its environmental impact.
Every crypto enthusiast is familiar with the fact that bitcoin mining deeply affects our planet. However, no one is familiar with the reasons behind this. Here are some of the prominent reasons behind the environmental impacts of bitcoin mining, and an utter portion demonstrating why we cannot ban bitcoin mining.
The essence of Bitcoin mining
Bitcoin mining is the action of maintaining bitcoin’s supply. Bitcoin miners involve computing processors and hardware to mine bitcoin units. To avail of block rewards in bitcoin mining, miners have to verify a set of transactions and broadcast that straight set of transactions on the blockchain.
Blockchain is a public distributed ledger that stores every possible information of bitcoin transactions in a hashing function. Bitcoin miners have to solve math puzzles to verify a set of transactions and solve a math puzzle. Miners have to produce a specific amount of hash.
In a nutshell, Bitcoin mining refers to adding new blocks to blockchain to incline the security of the bitcoin complex. All the more, bitcoin mining continues the supply of bitcoin units and keeps adding new coins to circulation.
Environmental Impacts of Bitcoin Mining
As mentioned ahead, bitcoin miners have to solve a math puzzle to verify a transaction set under a given time. Solving this math puzzle with ordinary computers is exceedingly challenging from regular computers. Moreover, bitcoin mining is exceedingly chaotic and competitive; all the more, every miner has to fight with other miners to solve a math puzzle in the very first place.
To win this race, bitcoin miners have to use specialized bitcoin mining hardware and graphic processing units. Furthermore, Bitcoin mining pools and solo miners do not merely use single bitcoin mining hardware; potential miners combine hardware in a rack.
The rack of bitcoin mining hardware operating collectively to solve a math puzzle is famous as a mining rig. These bitcoin mining rigs and graphic processing units consume an exceeding extent of electricity to produce fruitful results.
If a miner fails to solve a math puzzle earlier than other miners, he has to start the entire process all over. To sum up, to avail profitable results in a bitcoin mining venture, bitcoin miners have to keep running their computing processors.
Since bitcoin mining rigs consume a massive chunk of electricity, it leads to the burning of fossil fuels to an exceeding new extent. The burning of fossil fuels in enormous amounts is one of the prominent reasons for increasing greenhouse gas emissions.
Greenhouse gas emission or carbon footprint produces an exceeding extent of e-waste. Greenhouse gas emissions can increase the temperature of global warming, which is very harmful to our environment. According to some studies, bitcoin mining can only raise global warming by two units in three decades; yes, you read it right.
Is bitcoin mining essential?
Undeniably, bitcoin mining is an energy guzzler and impacts our planet enormously, but bitcoin mining is significant to the bitcoin network. Since no government authorities back up bitcoin, bitcoin mining is the mere process of maintaining the proper circulation of bitcoin units. Therefore, the more bitcoin mining process increases the security of the bitcoin network by verifying every possible transaction.
Bitcoin miners store the information regarding this transaction on an immutable public distributed ledger, blockchain. Without the bitcoin mining process, there will be a lot of double-spending; all the more, bitcoin units will completely stop, leading to a cryptocurrency market crash.
The portion mentioned above is everything you should know about the environmental impact of bitcoin mining.