ACCORDING TO A PAPER PUBLISHED IN THE journal Scientific Reports, the mining of Bitcoin and other cryptocurrencies is environmentally unsustainable because of the huge amount of electricity it requires. Mining has at times created harm to the environment not only greater than beef farming and other industries, but also greater than the value of the currencies produced.
This energy use "is because of the proof-of-work production process that [Bitcoin] uses," Benjamin A. Jones, an associate professor at the University of New Mexico's Department of Economics and co-author of the paper, tells Newsweek. Bitcoin mining uses an estimated 75.4 terawatt-hours per year (TWhyear-1). All of Austria only uses 69.9 TWhyear-1.
Bitcoin is the most popular cryptocurrency, one of several digital nongovernmental currencies that can be used for transactions outside of any country's financial system. These transactions are anonymous and verified by a cryptography system called blockchain, essentially a vast, decentralized records-keeping method.
Bitcoin and other well-known cryptocurrencies are generated via a process known as mining. The blockchain system requires "proof-of-work" to be given before a new crypto token is validated. Computers show proof of work by solving a complex cryptographic puzzle. Miners compete against each other to be first to solve the puzzles, leading them to invest in large computer farms or to combine their resources in computing pools.
"Miners all over the world use highly specialized computer equipment to engage in a massive numbers guessing game," Jones says, "The more and better your equipment, the faster you can guess the right result before your competition. This leads miners to invest in more and better equipment that uses ever more and more electricity. Magnify
This story is from the October 21, 2022 edition of Newsweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 21, 2022 edition of Newsweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Ray Romano
\"I read about three scripts, and at the end of each there was a little twist, a little turn, [and] it was funny.\"
Has J.K. Rowling Won the Culture War?
After years of backlash over trans issues, the Harry Potter author has received major business backing
Nothin' Lasts Forever
Taylor Swift's Eras Tour' ends its record-breaking run..
SPY IN THE SKY
CHINA FACES ACCUSATIONS of ESPIONAGE and WEAPONIZING OUTER SPACE as it BUILDS a NEW OBSERVATORY in CHILE critics say WILL BE USED for MILITARY PURPOSES
'This Murder Is a Symbol of the Times'
Conservatives and liberals agree on the state of the health care industry following the killing of Brian Thompson
The Defense Industry's Fight With ESG
EUROPEAN DEFENSE COMPANIES, ESPECIALLY smaller businesses, are being blocked from investment they sorely need by sustainability rules, a senior NATO official and several industry figures have said.
Margo Martindale
Jamie Lee [Curtis, producer] called me and she says, \"Jamie Lee Curtis here. I have a project for you. And you're gonna do it.\"
Malala Yousafzai
\"AFGHANISTAN IS THE ONLY COUNTRY IN THE world where girls are banned from access to education and women are limited from work.\"
In the Eyes of the Law
Jude Law is unrecognizable as an FBI agent on the trail of aneo-Naziterrorist group in real-crime drama The Order
Gonzo Intelligence
Instead of keeping a low profile, Moscow's spies are embracing the limelight and even being welcomed home by Vladimir Putin after their cover is blown
