Despite traditional mainstream skepticism surrounding the use of cryptocurrencies, the sheer inefficiency of conducting a single transaction puts bitcoin at a huge disadvantage.
Miners are becoming the principal consumers of energy in the growing bitcoin ecosystem. As each algorithmic problem becomes more and more complicated to solve, more machines are working longer hours in order to birth the next coin. Moreover, these processes are incentivized by rewarding miners whose block is accepted, with even more bitcoin.
This is in part why we are also seeing a rise in national investment in computing power. The more powerful the machines used to mine bitcoin, the more coins can be allocated to the machines owners. Thus the price of bitcoin works in tandem with the interest to mine the cryptocurrency, but not without its caveats.
Analyst Alex de Vries explained on Digiconomist that, “Over the years this has caused the total energy consumption of the Bitcoin network to grow to epic proportions, as the price of the currency reached new highs.”
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