Cryptocurrency mining consuming a lot of energy!
Cryptocurrency is also regarded as a decentralized virtual currency. By the looks of it, cryptocurrency is exceptionally efficient than the conventional fiat currency. The most important aspect of cryptocurrency is that nobody controls it or governs it. Anyone can get their hands-on cryptocurrency, rich or poor. However, people around the world need to be mathematically robust so that they could mine digital currency.
Constant mining gives birth to the cryptocurrency. However, the people who are mining cryptocurrency do not use traditional mining activities. Instead, to mine a cryptocurrency, the miners need a computer with a massive amount of processing power and graphics.
According to the cryptocurrency news platform, CoinMarketCap, the present-day market value of the top 100 cryptocurrencies is around USD 200B. Out of all the cryptocurrencies in the world, Bitcoin has the highest market capitalization. On the other hand, people like to invest their real-life assets on Bitcoin to attain massive profits.
Mining of the cryptocurrencies
Mining Bitcoin or any other cryptocurrency is the ultimate backbone of the network. The mining of Bitcoin, as well as the production of Bitcoin or any other digital coin, involves solving complex algorithms. The people who mine the cryptocurrency in a network are called miners. The miners need to confirm the transaction so that it would become valid. Additionally, the dealings which take place in a cryptocurrency network stores in a single public ledger.
It is also the job of the miner to provide optimum security of the cryptocurrency network. When the miners do their job or complete their work, they immediately receive a few cryptocurrency tokens. On the other hand, the miners also receive new coins from the network after successfully calculating.
The market capitalization of Bitcoin in 2017
Back in December in the year 2017, the value of a single Bitcoin token was around 17,000 USD. Over time, the mining industry concerning Bitcoin and other cryptocurrency became extremely competitive. Later in the year 2019, the value of Bitcoin again saw a prominent growth up to 11,000 USD. The amount of Bitcoin saw a massive increase after Facebook said that it would release Libra. According to the sources, Facebook would release Libra in the following year.
In the meantime, China has again become a hub to the most prominent cryptocurrency farm for mining in the world. Furthermore, the government of China in 2019 April said that it would not facilitate the extraction of cryptocurrency. Moreover, this is all the more reason why significant miners are relocating to significant other countries such as Myanmar, Vietnam, and Cambodia.
As of now, Cambodia has already become a massive Bitcoin hub all around the world.
The downside of cryptocurrency mining
The cryptocurrency mining consumes a significant amount of energy. There are several numbers of farms across the globe, and these farms come with massive energy consumption. If the miners begin fueling the mining farms with renewable energy sources, then it would decrease the dependency of fossil fuels.
In the long run, it would also reduce the emission of chloro-fluoro carbon. Bitcoin and other digital currencies are here to stay, and they will not perish away with the sands of time.