Bitcoin’s mining requires extensive supply of power
We all know that Bitcoin is the most popular cryptocurrency in the entire world. We also know that; bitcoin is currently the most capitalized cryptocurrency which went to the value of $69,000 per bitcoin in its peak. This speaks volumes about bitcoin’s domination in crypto domain. But, why is bitcoin priced at such a high rate? Why is bitcoin the most popular cryptocurrency? Let’s dive deeper into the subject.
Surely, Elon Musk and many other CEOs played a significant role in helping bitcoin reach where it is today. But, one more significant aspect that needs to be considered is that the cryptocurrency requires an abundance of energy to be mined.
According to the reports, it is stated that, Bitcoin consumes an estimated of 150 tera-watts of electricity annually. Factually the electricity consumption of bitcoin annually, is more than the electricity consumption of many countries such as Argentina, which has a population of about 45 million.
When mining of bitcoin is halted, the miner is surely expected to save tons of electricity, and contribute in a massive way towards contribution of energy conservation. A miner from Texas, went on to halt the mining activity to stabilize the power grids during the periods of high demand. Let’s look into the complete story below!
Riot Blockchain shuts the miners to stabilize the power grid
One of Texas’ biggest Bitcoin mining companies, Riot Blockchain, generated over $9.5 million in power credits by turning off its equipment last month. According to Riot’s monthly report, the company voluntarily reduced its energy use to make more power available to ERCOT, which provides electricity to 25 million Texans.
The CEO was happy to contribute to ERCOT as the demand for power consumption touched sky high in the month of July. Riot officially went on to curtail 11,717 mega-watt hours, which was officially enough to power around 15,000 average homes in Texas for one month.
In July, Riot also mined around 318 Bitcoins, and increased its tally to around 6,700 bitcoins. The monthly revenue from the sale of cryptocurrency was reported at around $5.6 Million. Other than that, since the power was curtailed, the company also went on to earn a power credit of $9.5 million, which in hindsight the company would not have been successful to earn if they had gone ahead in mining the bitcoins.
Writer’s Report:
It is ecstatic to see a cryptocurrency blockchain take the responsibility and contribute to the society when it’s needed the most. The action did benefit the blockchain positively and made sure that the decision was accurate.
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