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Tag: Bitcoin

This is what happens when Bitcoin miners take over your town

Politico Magazine:

The commercial miners now pouring into the valley are building sites with tens of thousands of servers and electrical loads of as much as 30 megawatts, or enough to power a neighborhood of 13,000 homes. And in the arms race that cryptocurrency mining has become, even these operations will soon be considered small-scale. Miehe knows of substantially larger mining projects in the basin backed by out-of-state investors from Wall Street, Europe and Asia whose prospecting strategy, as he puts it, amounts to “running around with a checkbook just trying to get in there and establish scale.”

Iceland is expected to use more energy mining bitcoin this year than it uses to power its homes

The “exponential” use of energy is obviously not sustainable.

Associated Press:

The energy demand has developed because of the soaring cost of producing and collecting virtual currencies. Computers are used to make the complex calculations that verify a running ledger of all the transactions in virtual currencies around the world.

In return, the miners claim a fraction of a coin not yet in circulation. In the case of bitcoin, a total of 21 million can be mined, leaving about 4.2 million left to create. As more bitcoin enter circulation, more powerful computers are needed to keep up with the calculations — and that means more energy.

More:

Bitcoin energy use in Iceland set to overtake homes, says local firm – Chris Baraniuk, BBC

In Iceland, bitcoin mining will soon use more energy than its residents – Cyrus Farivar, Ars Technica

 

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