Denis Opudo
Bitcoin is preferred by many traders in making transactions. The cryptocurrency that was created in 2009 is seen by many investors as the best asset to invest. The cryptocurrency is controlled by a system referred to as blockchain which is used to record transactions. The participants of bitcoin have to make records on the blockchain to ensure that the ownership is not shortchanged.
To encourage people in keeping the records, that involves the use of computers people who justify the blocks are honored by freshly developed bitcoins. The process itself is known as bitcoin mining. The number of bitcoins to be mined is controlled so as to have limited supply of the bitcoins. One is only allowed to mine a maximum of 21million bitcoins. For durability of the process, the process used in mining gets a little bit harder making it longer to get the cryptocurrency.
Those involved in the mining process are compelled to use powerful computers throughout the process until the bitcoin is earned. The more powerful the computer used is, the higher the rate of electrical power consumed. It is believed that the amount of electricity used to mine a single bitcoin could be used in homes for a month. Most of the bitcoin mining is carried out in China where it is believed that 80% of the cryptocurrency comes from the country and the cost of electricity is cheaper as compared to UK or US.
Research carried out shows that the amount of energy used by bitcoin in 2017 is equivalent to the energy consumed by 160 countries. The average energy used in Ireland and Africa is much lower than the energy used to mine bitcoin annually. The mode of electrical production in China poses threat to the environment in that the electricity is generated from combustion of fossil fuels which emit carbon monoxide.
