• About
  • Advertise
  • Privacy & Policy
  • Contact
Cryptos Valuator
  • Home
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Exchanges
No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Exchanges
No Result
View All Result
Cryptos Valuator
No Result
View All Result
Home News

Mining Gold Requires 20x the Energy of Bitcoin Mining

November 24, 2021
in News
0
Mining Gold Requires 20x the Energy of Bitcoin Mining
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter

Cryptocurrency mining is frowned upon because of the amount of energy required. Long Hash data shows that around $87.3 billion annually is spent mining gold, while $4.3 billion is spent mining Bitcoin.

Bitcoin mining is 20 times more expensive and requires 20x the energy required for gold mining. All the stories about Bitcoin’s negative effects on the environment, which surfaced in the wake of the surge in token prices in early 2017, should also be applied to Gold.

The market cap of these commodities is a bigger problem than electric consumption. The market cap of cryptocurrency is around $200 billion, while gold is valued at $8 trillion. An analyst could argue that gold’s mining costs are justified by its market value and price.

Gold mining costs

Mining is a necessity to keep sufficient tokens in circulation and meet the growing demand for bitcoin. Mining is required to settle transactions for bitcoin and all other proof-of work cryptocurrency on the market. The cost of mining Bitcoin should be compared with the total cost to mine and transfer gold.

London bullion market oversees the transfer of the traditional store value. It is the largest wholesale over-the counter market for trading gold and silver. UBS, JPMorgan, HSBC and Scotiabank are its clearing partners. The huge discrepancy could be reversed if both the clearing house and agency costs to move gold to overseas markets and energy costs are combined.

The rapid adoption of renewable energy sources is another argument for digital coins. Australia will soon be home to the First Solar Powered Bitcoin Mining Farm. In some areas, such as Chile and Southwest China where there is abundant supply of renewable energy, it is available free to corporations and households.

It is true that non-renewable energy sources are more affordable and most crypto mining centers rely on them to mine it. Bitcoin isn’t the only high-energy consumer. Gold, silver and fiat all sail in the same boat.

John Lilic, a member of ConsenSys’ Ethereum blockchain development studio, stated that the current unit cost for each transaction in crypto is more expensive than legacy systems and banks. The industry is hopeful that energy optimization systems will soon make energy consumption a non-issue. Lilic explains:

“The real question is whether crypto’s gross energy inefficiency is worth the benefits such as custody over assets. My argument is yes! It’s worth it, but only if the industry prioritizes and continues to work towards energy efficiency gains such as Proof of Stake.

Previous Post

Charles Hoskinsin, Co-Founder Of Ethereum And Cardano Invested In Bitcoin At $1 In 2011

Next Post

Mexico’s Central Bank To Tighten Bitcoin Regulations

Next Post
Mexico’s Central Bank To Tighten Bitcoin Regulations

Mexico’s Central Bank To Tighten Bitcoin Regulations

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 111 Followers
  • 23.5k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest
Venezuela Considers Proposal to Include Bitcoin in Central Bank Reserves

Venezuela Considers Proposal to Include Bitcoin in Central Bank Reserves

June 23, 2021
Newegg Expands Bitcoin Payment Option To 73 More Countries

Newegg Expands Bitcoin Payment Option To 73 More Countries

July 4, 2021
World of Ether Goes Live on Ethereum Mainnet, Soon Becoming Top Ranked Crypto Game

Black Friday Drags Crypto Market Down, Bitcoin & Ethereum Price Plunges

August 4, 2021
World of Ether Goes Live on Ethereum Mainnet, Soon Becoming Top Ranked Crypto Game

Enterprise Ethereum Alliance Opens Regional Office In South Korea

August 6, 2021
UPbit Audit Reveals That South Korea’s Cryptocurrency Exchange is Not Guilty

UPbit Audit Reveals That South Korea’s Cryptocurrency Exchange is Not Guilty

Goldman Sach’s Cryptocurrency Startup Circle Raises $110 Million Led By Bitmain Technologies

Goldman Sach’s Cryptocurrency Startup Circle Raises $110 Million Led By Bitmain Technologies

NASDAQ-Powered Crypto Exchange To Go Live in June 2018

NASDAQ-Powered Crypto Exchange To Go Live in June 2018

Why is ZCash Price Rising ? | Latest Crypto News

Why is ZCash Price Rising ? | Latest Crypto News

BTC and ETH Suffer Further Price Drops Following $110M Liquidation

Bitcoin Drops Near $27K, Altcoins Post Double Digit Losses With 1 Billion Worth Liquidated; Here’s What Might Be Next

May 20, 2022
Cryptocurrencies Might Be Subject to Global Legislation as Early as 2023

Terra’s Co-Founder Suggests a Hard Fork To Save the Terra Ecosystem

May 19, 2022
Cryptocurrencies Might Be Subject to Global Legislation as Early as 2023

El Salvador Hosts Central Banks To Discuss the Bitcoin Rollout

May 19, 2022
Cryptocurrencies Might Be Subject to Global Legislation as Early as 2023

The Cryptocurrency Market Flashes Contrarian “Buy” Signal, When Is the Best Time To Buy Bitcoin and Altcoins?

May 19, 2022

Recent News

BTC and ETH Suffer Further Price Drops Following $110M Liquidation

Bitcoin Drops Near $27K, Altcoins Post Double Digit Losses With 1 Billion Worth Liquidated; Here’s What Might Be Next

May 20, 2022
Cryptocurrencies Might Be Subject to Global Legislation as Early as 2023

Terra’s Co-Founder Suggests a Hard Fork To Save the Terra Ecosystem

May 19, 2022
Cryptocurrencies Might Be Subject to Global Legislation as Early as 2023

El Salvador Hosts Central Banks To Discuss the Bitcoin Rollout

May 19, 2022
Cryptocurrencies Might Be Subject to Global Legislation as Early as 2023

The Cryptocurrency Market Flashes Contrarian “Buy” Signal, When Is the Best Time To Buy Bitcoin and Altcoins?

May 19, 2022
Cryptos Valuator

Follow Us

Browse by Category

  • Altcoin News
  • Bitcoin
  • Bitcoin News
  • Blockchain
  • Blockchain News
  • Business
  • Coins
  • Cryptocurrency
  • Cryptonews Deals
  • DeFi News
  • Economy
  • Ethereum
  • Ethereum News
  • Events
  • Exchanges
  • General
  • ICOs
  • Industry Talk
  • Markets
  • News
  • NFT News
  • Opinion
  • Press Releases
  • Regulation
  • special site
  • Sponsored
  • World

Recent News

BTC and ETH Suffer Further Price Drops Following $110M Liquidation

Bitcoin Drops Near $27K, Altcoins Post Double Digit Losses With 1 Billion Worth Liquidated; Here’s What Might Be Next

May 20, 2022
Cryptocurrencies Might Be Subject to Global Legislation as Early as 2023

Terra’s Co-Founder Suggests a Hard Fork To Save the Terra Ecosystem

May 19, 2022
  • Terms & Conditions
  • Privacy Policy

© 2021 Cryptos Valuato

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Exchanges

© 2021 Cryptos Valuato