Bitcoins are generated thru computer calculations, hence huge power consumption.

The skyrocketing value of Bitcoin is leading to soaring energy consumption. According to one widely cited website that tracks the subject, the Bitcoin network is consuming power at an annual rate of 32TWh—about as much as Denmark. By the site’s calculations, each Bitcoin transaction consumes 250kWh, enough to power homes for nine days.

Bitcoins As Digital Currency's Rally Crushed Every Other Currency in 2016
A collection of bitcoin tokens stand in front of an illustration of binary code in this arranged photograph in London, U.K., on Wednesday, Jan. 4, 2017. The electronic coin that trades and is regulated like oil and gold surged 79 percent since the start of 2016 to $778, its highest level since early 2014. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

However, we can make some educated guesses. For starters, we know the industry’s revenue: Bitcoin miners currently generate 75 bitcoins per hour, which, at the current price of around $12,500 per bitcoin, translates to $937,500 per hour, or more than $8 billion per year.

One thought on “Bitcoins are generated thru computer calculations, hence huge power consumption.”

  1. It’s interesting when they first started…you could grab a decent GPU (like a ~$150 Nvidia card), and run the bitcoin “mining” program. You could mine a few bitcoins a week like that. So, mining rigs suddenly became all the rage. So much the rage, that nvidia had a very hard time keeping up with demand!

    There were guys with HUGE mining systems in their garages, spare bedrooms…etc. Now the computational power to mine a single bitcoin is so large, you basically need a supercomputer. That’s why there was a glut of used high-end graphics cards on the market a few years ago, as all of these home-miners sold off their gear.

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