blog posts

What is an extraction?

Extracting the process of adding transaction records in a public office is called bitcoin, which is called the blockchain. This general ledger is there to make any transaction, and any network user can access the general ledger. This office is also used to ensure that no one can re-spend the money they have already spent elsewhere in legal Bitcoin transactions.

Miners serve the bitcoin community so that they approve of each transaction and ensure that all of them are legal. An extractor receives a reward when a new block is sealed as of October 2017, when a bonus of 12.5 bitcoins was announced per block.

The rewards of emerging coins are likened to commodities such as gold mined. This is why this process is called extraction.

Hardware for bitcoin mining

In the recent era of bitcoin, many people were interested in it because, for them, bitcoin was a revolutionary and liberating idea. In a world run by banks, tax authorities, and large corporations that care about how people spend their money, it is a decentralized network where ordinary users are responsible for ensuring that transactions are done correctly. , Was like a comfortable breath in the open air. In the past, the value of bitcoin was by no means even close to its current value. So many miners were motivated not only by profit but also by the idea of ​​bitcoin itself. They could generate hash sequences and consolidate transactions using sufficient power from computers or laptops.

In some cases, miners found that high-end graphics cards had the potential to increase bitcoin mining power significantly. Those graphics cards consumed much less energy than work units, and the results were 50 to 100 times better than before. Subsequently, extraction devices were introduced. They increased mining capacity fivefold, allowing the first mining farm to be built at an operating profit, paving the way for the bitcoin mining industry.

Suitable CPU for extraction

Among the bitcoin mining hardware, your computer is the least powerful category. CPU stands for central processing unit and refers to your computer’s processor. In the past, the only way to extract bitcoin was with this processor, and it was very efficient and expensive (all you needed was a computer with a powerful enough processor).

Some politicians, media people, and critics of digital currencies believe that the impact of bitcoin mining on the environment is enormous. This process is damaging the environment and causing the Earth to become warmer. According to these people, bitcoin consumes the world’s energy and, as a result, is responsible for releasing large amounts of carbon into the Earth’s atmosphere. In recent weeks, some EU lawmakers have even proposed a law banning evidence-based cryptocurrencies, citing concerns about bitcoin environmental pollution.

Concurrent with this criticism, the bitcoin mining industry has dramatically shifted to the use of renewable energy. According to reports, about 40 to 75 percent of the energy used to extract bitcoins comes from renewable sources. Meanwhile, some believe that the crypto industry can help energy producers to create more renewable energy so that other industries can use it.

But which group is right? What is the impact of bitcoin mining on the environment? Does it help protect the environment or have a detrimental effect? Follow us to get the answers to these questions.

Crypto miners compete with other industries for energy.

According to European lawmakers calling for a ban on evidence in the EU, miners are using electricity needed by other industries. They say:

This energy is essential for the development of steel, the production of large-scale batteries, and the electrification of our transportation sector.

In addition, critics of the Ramzars mining industry say that even if miners operate in areas where clean energy is abundant, they still compete with other industries that seek to reap the benefits of low-cost energy.

Therefore, experts say that turning on and off the bitcoin extraction process is essential to balance the load on the power grid. According to them, compared to the bitcoin mining process, it is more difficult to shut down a steel plant where certain temperatures and the assembly line must be maintained. Therefore, miners can reduce or stop their activity on days when electricity demand is high, such as during peak heat days. But to what extent does this control the harmful impact of bitcoin mining on the environment?

Use of renewable energy to extract bitcoins

For many miners, using electricity from renewable sources makes more sense economically. In general, renewable energy is cheaper than fossil fuels to maintain the profit margin of miners. Fossil fuels are not only more expensive but also vulnerable to external price shocks, such as the Russia-Ukraine war.

However, renewable energy is not produced 24 hours a day, 365 days a year, making it less attractive to miners. Renewable energy sources are variable and uncontrollable; Because this energy is only produced when the weather allows.

In addition, significant amounts of renewable energy are generated in remote areas of the world, and there is no way to transfer it to high-consumption areas. As a result, producers may stop or limit their energy production because it is no longer used. However, countries worldwide are trying to develop better transmission lines for the export of this type of energy. Therefore, using some methods, the negative impact of bitcoin mining on the environment can be controlled.

The role of battery usage in reducing the impact of bitcoin mining on the environment

Storing electricity instead of using it for extraction is associated with several problems. According to experts, although it is possible to store unused energy somewhere and use it later, it should also be borne in mind that a lot of waste is generated after the battery expires. Therefore, this method is not very popular.

In addition, because it takes a lot of energy to extract bitcoins, the batteries drain quickly. While the only thing miners want is an almost sustainable energy source.

The merger of power generation and bitcoin mining companies

The motivations of energy producers and crypto miners are so aligned that it will soon be difficult to draw the line between the two.

More energy companies have recently entered the world of bitcoin mining, while miners accumulate their energy. Many believe that those energy companies that do not pursue bitcoin mining lose the opportunity to make high profits from the industry. Bitcoin mining is much more profitable than selling energy to the grid in most cases.

Experts say that in the next 5 to 10 years, all major crypto miners will have to generate the electricity they need to stay competitive. According to them, as the bitcoin mining industry booms and grows, integrating renewable energy production with the industry will be a strategic and important advantage.

What do bitcoin proponents say about the impact of bitcoin mining on the environment?

Proponents of Bitcoin, meanwhile, say that most allegations of Bitcoin environmental pollution stem from the fact that opponents do not believe in Bitcoin itself. Therefore it is even possible to reduce the amount of carbon produced by bitcoin mining to zero. It is not to satisfy them.

Proponents of her case have been working to make the actual transcript of this statement available online. They say that while the devastating impact of bitcoin mining on the environment is obvious. Bitcoin is harmful to the environment and consumes a lot of energy, but this is the price we need to have a global monetary system without the need for a license and resistant to censorship. Let’s pay.

See also: List of of the Prices

Summary

In this article, we examine the various aspects of the impact of bitcoin mining on the environment.

Many critics believe that bitcoin mining is a very energy-intensive process that helps warm the planet. Recent data, however, show that energy consumption by the bitcoin mining process is much lower than that consumed by traditional paper monetary systems. Therefore, their opposition to the industry seems to stem from their opposition to Bitcoin itself.