Bitcoin and its energy consumption
Bitcoin and its immense energy consumption - a much-discussed topic lately. According to studies, Bitcoin consumes more energy than Denmark in a year. Does the high energy consumption mean the end for bitcoins and for the blockchain in general?
First of all, it has to be said that cryptocurrencies are only one application of blockchain, and there are many more ways to use the technology that use less energy.
Bitcoin is a new technology and must be treated as such. Cars, computers and airplanes were also far from their current energy efficiency at the beginning of their development. This development period must be granted to Bitcoin and there are already more energy-efficient algorithms than the proof-of-work that Bitcoin is still working with.
When it comes to energy consumption, you also have to pay attention to where the energy comes from. For example, a lot of mining is taking place in Iceland, a country that uses almost 100% renewable energy. Right now, however, the mining hub is in China, a country that derives most of its electricity from coal.