Bitcoin Awards and the challenges of tomorrow

Bitcoin Awards and the challenges of tomorrow

One of the big problems posed by Bitcoin, is an energy problem.
Realizing a transaction in Bitcoin is extremely energy intensive: for example, a single transaction in the cryptocurrency requires as much electricity as that used by an American house for a week!
The consumption of all Bitcoin transactions represents 0.12% of global electricity consumption.
And the more transactions, the higher the price…

Why does Bitcoin demand so much energy?

The reason for this excessive energy consumption lies in its very principle of functioning, through the “proof of work”.
This “proof of work” requires minors to solve extremely complicated mathematical problems and therefore requires powerful software and supercomputers to validate transactions and generate Bitcoins (their payment for the work provided).
Some have made the calculation is to estimate the electricity consumption for a single transaction at 200 KW.

Is the month of Ether energy-consuming?

Bitcoin is not the only crypto currency to consume electricity, and some currencies require less energy, like Ether.
It would only consume 1.85 US households on a day to complete a transaction.
The entire Bitcoin network consumes the equivalent of 2.4 million American homes against 0.9 million for Ether.
In comparison, the Visa credit card system consumes the equivalent of 50,000 homes.

Russia pole of attraction for mining

It is in this context that Russia, through the blockchain and cryptocurrency association, the RACIB, conducted a survey on the attractiveness that this country represents for mining companies.
To this end, he compared the regions that have assets in terms of electricity costs, logistics and telecommunications infrastructure development.
Based on the results of this study, it would appear that the Krasnoyarsk Territory in eastern Russia is best placed to meet these needs.
This region has a territory that covers 2339700 square km. Its capital is the third largest city in Siberia with 1 million inhabitants.
The cost of electricity in this region is 2.41 rubles per KWh, but it is not the cheapest region; in the region of Khakassia the cost is 2.01 rubles and in Irkutsk the cost is 2.14 rubles.
But in terms of logistics, the Krasnoyarsk won the vote.
Despite these favorable conditions, no mining operation has yet come to settle in this region favored by cities like Moscow or Leningrad.