{"id":15867,"date":"2017-11-23T09:00:08","date_gmt":"2017-11-23T17:00:08","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=15867"},"modified":"2017-11-27T08:21:22","modified_gmt":"2017-11-27T16:21:22","slug":"bitcoins-energy-problem-getting-control","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bitcoins-energy-problem-getting-control\/","title":{"rendered":"Bitcoin&#8217;s Energy Problem Is Getting Out of Control"},"content":{"rendered":"<p>Despite its unparalleled rise this year, Bitcoin is perpetually derided by its critics. For example, JP Morgan Chase CEO Jamie Dimon was one of many financial bigwigs who generated <a href=\"https:\/\/cryptoslate.com\/crypto-vs-financial-bigwigs\/\">a lot of attention<\/a>\u00a0by criticizing Bitcoin and describing the currency as a \u201cfraud that will eventually blow up.\u201d<sup>\u00a0 \u00a0 \u00a0\u00a0<\/sup><\/p>\n<figure id=\"attachment_15876\" aria-describedby=\"caption-attachment-15876\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15876 size-medium\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-oman-300x188.jpg\" alt=\"The closest to Bitcoin in terms of annual electricity consumption is the country of entire Oman with 29.05 TWh.\" width=\"300\" height=\"188\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-oman-300x188.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-oman.jpg 600w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-15876\" class=\"wp-caption-text\">The closest to Bitcoin in terms of annual electricity consumption is the entire country of Oman, with 29.05 TWh.<\/figcaption><\/figure>\n<p>Still, with so much good news surrounding <a href=\"http:\/\/cryptoslate.com\/coins\/bitcoin\">Bitcoin<\/a>, it\u2019s easy to ignore the critics and to focus on the encouraging developments for the currency. After all, Bitcoin has appreciated more than 800% this year, and its place as the dominant cryptocurrency has never been more evident.<\/p>\n<p>There is, however, one criticism that is valid and troubling: Bitcoin uses a lot of energy.<\/p>\n<p>The statistics are pretty staggering. According to <a href=\"https:\/\/digiconomist.net\/bitcoin-energy-consumption\">Digiconomist<\/a>, Bitcoin mining consumes 291- kilowatt hours of electricity per transaction. If you, like me, don\u2019t understand a kilowatt hour, consider that Bitcoin\u2019s energy consumption could power almost ten U.S. households for an entire day.<\/p>\n<p>With hundreds of thousands of Bitcoin transactions taking place each day, Bitcoin is consuming an impressive and <a href=\"https:\/\/cryptoslate.com\/one-bitcoin-transaction-now-uses-much-energy-home-week\/\">startling amount of electricity<\/a>.<\/p>\n<h3>On a global scale, Bitcoin is responsible for .13% of the world\u2019s electricity consumption, which is an extreme amount of energy for a single endeavor that doesn\u2019t even yield a physical product.<\/h3>\n<p>It\u2019s also noteworthy that the energy consumption for each Bitcoin transaction is rapidly increasing. The rise in energy consumption roughly correlates with Bitcoin\u2019s tremendous price increase.<\/p>\n<figure id=\"attachment_15871\" aria-describedby=\"caption-attachment-15871\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15871 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-energy-consumption-1024x442.jpg\" alt=\"According to Digiconomist, Bitcoin's energy consumption index chart has very steadily increased over just the past month.\" width=\"1024\" height=\"442\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-energy-consumption-1024x442.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-energy-consumption-300x129.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-energy-consumption-768x331.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcoin-energy-consumption.jpg 1500w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-15871\" class=\"wp-caption-text\">According to Digiconomist, Bitcoin's energy consumption index chart has very steadily increased over just the past month.<\/figcaption><\/figure>\n<p>With Bitcoin surging through the $8,000 price point and showing no signs of slowing down, it\u2019s a good thing that an Austrian startup is claiming to have a solution for the high energy consumption of cryptocurrencies like Bitcoin and <a href=\"http:\/\/cryptoslate.com\/coins\/ethereum\">Ethereum<\/a>.<\/p>\n<figure id=\"attachment_4793\" aria-describedby=\"caption-attachment-4793\" style=\"width: 300px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/cryptoslate.com\/coins\/hydrominer\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4793 size-medium\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/10\/hydrominer-small-cover-300x137.jpg\" alt=\"HydroMiner concluded its ICO on November 15th and raised\u00a08,676 ETH, or approximately $3,149,190 USD.\" width=\"300\" height=\"137\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/10\/hydrominer-small-cover-300x137.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/10\/hydrominer-small-cover.jpg 482w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-4793\" class=\"wp-caption-text\">HydroMiner concluded its ICO on November 15th of this year and raised\u00a08,676 ETH, or approximately $3,149,190 USD.<\/figcaption><\/figure>\n<p>The company, <a href=\"https:\/\/cryptoslate.com\/coins\/hydrominer\/\">HydroMiner<\/a>, is utilizing green energy that it is drawing from hydropower stations in Europe\u2019s Alpine region.<\/p>\n<p>They are using this green energy to power crypto mining equipment that, according to their White Paper, \u201cmines all scalable cryptocurrencies.\u201d<\/p>\n<p>HydroMiner aims to reduce the overall cost of cryptocurrency transactions by relying on efficient, low-cost natural resources to power crypto-mining machines. In some ways, their proposition sounds a little far-fetched, but when considering the other alternatives, there is an alluring sensibility to the idea.<\/p>\n<p>Crypto-mining is so energy intensive because it relies on a computer\u2019s GPU, which is an energy-sucking computer component often associated with computer gaming. That\u2019s why, according to Forbes,<\/p>\n<blockquote><p>\u201cThe typical gaming computer consumes as much power each year as approximately three refrigerators.\u201d<\/p><\/blockquote>\n<p>Of course, crypto mining doesn\u2019t use the GPU lightly. The powerful algorithms that miners process put significant strain on the GPU and cause it to utilize an inordinate amount of energy.<\/p>\n<p>So far, HydroMiner is off to a good start. They recently completed their ICO and raised almost $3 million to finance the project\u2019s launch. These funds will help establish the hydro generators in strategic locations to maximize their effectiveness.<\/p>\n<figure id=\"attachment_15875\" aria-describedby=\"caption-attachment-15875\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15875 size-medium\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/hydro-mining-bitcoin-ethereum-300x200.jpg\" alt=\"The HydroMiner project and ICO is more than an idea -- they have already rented two hydro power stations.\" width=\"300\" height=\"200\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/hydro-mining-bitcoin-ethereum-300x200.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/hydro-mining-bitcoin-ethereum.jpg 600w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-15875\" class=\"wp-caption-text\">The HydroMiner project and ICO is more than an idea &#8212; they have already rented two hydro power stations.<\/figcaption><\/figure>\n<p>In reality, HydroMiner is only prepared to make a small dent in the overall energy use for Bitcoin mining. Crypto-miners are positioned all over the world, and not everyone can harness a waterfall to power their PCs.<\/p>\n<p>HydroMiner's product isn\u2019t an infinitely scalable solution to Bitcoin\u2019s energy gluttony, but it is a creative way to help solve the problem.<\/p>\n<h3>The Future of Mining Crypto<\/h3>\n<p>It\u2019s becoming increasingly lucrative to mine cryptocurrencies. As their prices increase &#8211; and they have almost unanimously been growing this year &#8211; the incentive grows to spend large amounts of money on energy to power crypto-mining devices.<\/p>\n<p>Therefore, innovators have plenty of motivation to develop more novel solutions that can continue to have an impact on this market.<\/p>\n<p>When HydroMiner is grouped with other like-minded companies that are bringing their energy resolutions to market, we may be able to say that we have found a comprehensive solution to Bitcoin\u2019s energy gluttony.<\/p>\n<p>Until then, <a href=\"http:\/\/cryptoslate.com\/coins\/bitcoin\">Bitcoin<\/a> miners will continue to utilize the energy output of a small country, even though their profits are leached away with each electricity bill.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite its unparalleled rise this year, Bitcoin is perpetually derided by its critics. For example, JP Morgan Chase CEO Jamie Dimon was one of many financial bigwigs who generated a lot of attention\u00a0by criticizing Bitcoin and describing the currency as a \u201cfraud that will eventually blow up.\u201d\u00a0 \u00a0 \u00a0\u00a0 Still, with so much good news [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":15878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin&#039;s Energy Problem Is Getting Out of Control<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/bitcoins-energy-problem-getting-control\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin&#039;s Energy Problem Is Getting Out of Control\" \/>\n<meta property=\"og:description\" content=\"Despite its unparalleled rise this year, Bitcoin is perpetually derided by its critics. For example, JP Morgan Chase CEO Jamie Dimon was one of many financial bigwigs who generated a lot of attention\u00a0by criticizing Bitcoin and describing the currency as a \u201cfraud that will eventually blow up.\u201d\u00a0 \u00a0 \u00a0\u00a0 Still, with so much good news [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/bitcoins-energy-problem-getting-control\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-23T17:00:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-11-27T16:21:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/bitcin-energy-consumption-cover.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1648\" \/>\n\t<meta property=\"og:image:height\" content=\"588\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bill 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