We know that cryptocurrency mining has become a way to earn passive income. This practice has become so popular that there is real concern about its impact on electricity bills and the environment .
In this article, we are going to explain the possible economic and environmental effects of mining cryptocurrencies . Let’s start!
Bitcoin and the environment
As governments and companies increasingly make decisions to reduce the environmental impact of their activity , those responsible for mining Bitcoins have another roadmap.
According to Visual Capitalist , if Bitcoin were a country, it would rank 27th worldwide in electricity consumption: 129 TWh each year (Spain generates 263 TWh) . In other words, global Bitcoin mining consumes more electricity than countries like Norway or Switzerland.
Bitcoin mining is very polluting.
To exemplify Bitcoin mining, imagine an office building where, floor by floor, there are computers connected to the Internet working exclusively to solve mathematical problems that allow Bitcoins to be created.
What is needed to mine bitcoin
When we talk about mining bitcoins, we are not referring to a process like mining gold, but rather something more complex.
Mining bitcoins, broadly speaking, consists of using the computational capacity of, for example, a graphics card, to solve mathematical problems that allow the creation of this cryptocurrency.
In this way, whoever first solves this mathematical problem wins the prize in bitcoins . For this reason, the more and more powerful teams you have to be the first to solve the problem, the more bitcoins you can generate.
As a result of all this, it is when you can begin to understand that in the news they talk about the so-called “ mining farms ” , “mining rigs” or the shortage of graphics cards in the market .
Do I pollute mining Bitcoins from home?
Suppose you get a desktop computer powerful enough to mine 24 hours a day without interruption and exclusively. We already warned you that it doesn’t matter what graph you have: you’re going to fall short.
Ignoring the amount of coins that you will be able to generate, your equipment will have an approximate consumption between 50 and 450 Wh .
In this way, we can say that, due to the energy consumption that you make mining bitcoins, you are contributing to the pollution of the planet . This is due to the origin of most of the electricity production.
The energy we need is produced from many types of energy , mostly fossil fuels such as coal, oil or gas (highly polluting).
How to save on the electricity bill?
If you want to save on your home electricity bill , we recommend the following options:
- Choosing a cheap electricity company : There are electricity companies on the market, which allow you to obtain cheap electricity rates that suit you and help to offer you the cheapest rates with hourly discrimination .
- Take advantage of the cheapest hours : Whatever your lifestyle, light hours will always offer you the possibility of paying less and saving on your bill. Our recommendation is that you use your electrical devices during the cheapest hours of electricity (Valley Hours: Monday to Friday from 00:00 to 08:00 and on weekends 24 hours).
- Schedule your devices : Whenever you have the option, schedule your devices to turn on and off automatically. In this way, you will be able to use less electricity in the event that you forget to turn off your electrical appliance.
- Renewable energies : In the event that you use renewable energy sources such as solar energy, in addition to making energy cheaper, you can take advantage of it to sell the surplus energy you generate . In this way, you can reduce your cost and help the environment .