Bitcoin and Consumption. Table of Contents

Why Bitcoin Mining and Energy Consumption?

The energy expenditure associated with the best-known digital currency continues to arouse great controversy worldwide.

Detractors of the digital currency, which recently reached a new all-time high of $ 60,000, denounce that the PoW (proof-of-work) consensus protocol used to mine bitcoins through the use of computer equipment to solve cryptographic puzzles carries an excessive cost energetically.

This computer equipment, powered by state-of-the-art graphics, requires chilling amounts of electricity to function.

Even though the 2020 halving cut the reward for BTC mining by half, the drastic revaluation of the coin seen in 2021 has made mining more popular than ever.

And we’re not just talking about Bitcoin enthusiasts working from their home computers.

More and more traders operate from warehouses full of computer equipment, with the obvious costs of electricity, refrigeration and maintenance that this entails.

The University of Cambridge Electricity Consumption Index estimates that the currency’s consumption at the end of March was about 139.38 terawatt-hours (TWh).

This represents a higher consumption than in countries such as Sweden (131.80 TWh) or Ukraine (128.81 TWh).

Broadly speaking, Bitcoin mining represents approximately 0.59% of global energy consumption.

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Energy Consumption context

Bitcoin’s high energy expenditure is not exactly the best cover letter in an increasingly environmentally conscious world, but it is important not to lose perspective.

As of March 26, 2021, the combined value of all bitcoins mined was just over $ 1 trillion, slightly outperforming Ukraine and Sweden, which closely follow BTC in the energy consumption rankings prepared by the University of Cambridge.

This means that, according to this indicator, Bitcoin does not involve excessive energy expenditure.

But let’s compare Bitcoin’s “digital gold” to the energy-intensive process involved in actually mining gold from the ground.

Furthermore, bitcoin mining turns out to be much more efficient than gold mining, even if we can’t make a fancy necklace out of cryptocurrencies.

If we consider the many advantages of Bitcoin (such as its security, privacy or the fact that it allows cross-border operations), we can conclude that it is worth the energy use that this process implies.

However, the responsible thing would be to explore more efficient ways to use energy.

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Proof of Stake (PoS) or Proof of Work (PoW)

One possible solution would be to move from a proof-of-work consensus protocol to a proof-of-stake-based model.

With the so-called PoS, it is only necessary to demonstrate possession or participation in a currency, leaving behind mining and its high costs.

Despite the fact that PoS is the most efficient consumption protocol from an energy point of view, as well as the one preferred by experts such as Vitalik Buterin, founder of Ethereum, PoS finds nothing but resistance among Bitcoin miners.

To a large extent, this is nothing more than a reaction, since the miners have invested large sums in their equipment and expect to receive benefits from it.

However, there are many who associate this expensive cryptography and its energy demands with the philosophy of Bitcoin, while PoW increases the security of blockchain technology and creates obstacles to the advancement of malicious agents.

In addition, Bitcoin carries the banner on behalf of the rest of cryptocurrencies, and with its achievements, it increases the value and prestige of the entire sector.

Why change something that generates such margins?

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Is cloud mining the solution?

Where are we then? StormGain follows an alternative strategy thanks to the integrated Bitcoin Cloud Miner tool.

With StormGain it is no longer necessary to bear the expenses of buying and installing a mining platform.

StormGain’s users can access the cloud miner from the platform to earn BTC.

It is only necessary to log in to StormGain’s platform, completely free of charge (without direct costs or expenses derived from electricity).

The longer you are connected to StormGain’s application or website, the greater your earnings in BTC can be.

You can also increase your reward rate by trading cryptocurrencies from StormGain’s platform.

In line with this approach, StormGain continues to use conventional hardware to mine all Bitcoin granted in StormGain.

However, and since these rewards are shared by all StormGain’s users, StormGain hopes to reduce pollution and offer an alternative to the installation of domestic mining rigs that is greener and cleaner! For now, and until StormGain discovers new, more efficient and less polluting technologies, StormGain’s cloud mining program offers the best solution to use hardware in the most profitable way for the majority.

How does Cloud Mining work on StormGain?

Buy and Mine Bitcoin with StormGain today

StormGain is an online platform with which you can buy, sell and trade cryptocurrencies, including Bitcoin, Ethereum, Ripple or Litecoin, as well as a wide range of altcoins with up to 300x leverage.

Thanks to its integrated cryptocurrency wallets, its low commissions and the integrated cloud miner, StormGain is the best choice for all your crypto needs.

If you want to know more, visit StormGain Official Website or register in a few seconds.

Take a look at the demo account and you will be surprised how easy it is to invest in cryptocurrencies.

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