Monday, April 15, 2013

Bitcoin Mining is a environmental disaster

During the last weeks, there was a lot to read about the rise and fall of bitcoins. Here’s another, not insignificant, information from Bloomberg:

Before bitcoins can be traded, though, they need to be created. This mining process replicates the resource-hungry and value-destroying process of the gold era:

Blockchain.info, a site that tracks data on Bitcoin mining, estimates that in just the last 24 hours, miners used about $147,000 of electricity just to run their hardware, assuming an average price of 15 cents per kilowatt hour (a little higher than the U.S. average, lower than some high cost areas like California). That, of course, is in addition to the money devoted to buying and building the mining rigs. The site estimates the profits from the day of mining at about $681,000, based on the current value of Bitcoins. So mining, at least for the moment, is a lucrative business.

The trade-off here is that as virtual value is created, real-world value is used up. About 982 megawatt hours a day, to be exact. That’s enough to power roughly 31,000 U.S. homes, or about half a Large Hadron Collider. If the dreams of Bitcoin proponents are realized, and the currency is adopted for widespread commerce, the power demands of bitcoin mines would rise dramatically.

[read more] [Blockchain] [via fefe]

Notes

  1. infotechiahhh reblogged this from emergentfutures
  2. zkicomm reblogged this from emergentfutures
  3. stonedslacker reblogged this from emergentfutures
  4. yiddischemama reblogged this from futurescope
  5. muddledreality reblogged this from emergentfutures
  6. emergentfutures reblogged this from futurescope
  7. crux112 reblogged this from futurescope
  8. dagdammit reblogged this from oldmanyellsatcloud and added:
    You know, the US financial industry has to be consuming alot more than this. Maybe even Wall Street alone.
  9. sliverdemon reblogged this from oldmanyellsatcloud and added:
    OH MAN BITCOINS COST TIME AND ENERGY LIKE EVERYTHING ELSE WE DO I mean what did you expect really
  10. protomvladtheimpaler reblogged this from oldmanyellsatcloud
  11. mcgomez reblogged this from futurescope
  12. budgiebin reblogged this from catbountry and added:
    Dude, mining is WAY past its usefulness right now. I’ve spent about 3 weeks trying to get up to what is currently 30...
  13. squalpat reblogged this from futurescope
  14. troubleshooting-life reblogged this from futurescope
  15. jimmjim reblogged this from futurescope and added:
    This is quite interesting…
  16. okorogariist reblogged this from futurescope
  17. takoluka reblogged this from oldmanyellsatcloud
  18. sultan-of-sentiment reblogged this from catbountry
  19. catbountry reblogged this from oldmanyellsatcloud
  20. oldmanyellsatcloud reblogged this from futurescope and added:
    Ohhhh, I’m gonna have to bring this up in way more conversations than I’d like.