Bitcoin Could Soon Consume More Electricity Than the U.S.

The cryptocurrency mining takes place where energy is cheap, primarily in Iceland and China.

bitcoin
Bitcoin (Ted Soqui/Corbis via Getty Images)

Bitcoin already uses more electricity than some small countries, and a new article in  Wired investigates why the cryptocurrency is such an energy monster. It is the blockchain, the ledger that allows users to record transactions. To access the blockchain, a user must solve a “hashing algorithm,” an extremely difficult math equation. This process is called bitcoin mining, and the algorithm takes tremendous computer power to solve. Bitcoin mining takes place where energy is cheap, primarily in Iceland and China. A recent article in Grist estimated that by mid-2019, bitcoin mining will consume more energy than the entire United States. The bitcoin mining system exists with egalitarian goals in mind, the notion that ability to solve an equation is the only barrier toward accumulating bitcoin. According to Wired author Adam Rogers, solving this climate change nightmare will require either bitcoin controversially changing its barrier to entry or finding an effective use for all the electricity it generates.

The InsideHook Newsletter.

News, advice and insights for the most interesting person in the room.