Recently cryptocurrencies made so much hype in the market. Many of us thought it could be the next big thing. But after the Bitcoin hype, it seems mining is not profitable anymore because it uses so much energy and expensive machines that we all be in a total loss than what we generate by mining.
Bitcoin Mining and Power Consumption
Alex de Vries who is a Financial Economist and a Blockchain Specialist speculates that bitcoin could use up as much as 7.67 Gigawatts of electricity by end of the year and this will make the digital currency’s electrical consumption more than Austria, which uses about 8.2 Gigawatts every year.
That is almost 0.5% of the world’s energy consumption.
As of now, bitcoin uses over 2.5 Gigawatts of electricity which is comparable to Ireland’s consumption.
A single transaction in bitcoin requires the same amount of electricity used by a household in the Netherlands for a month.
Is Bitcoin Mining Worth it?
To be clear in small-scale: a big NO, it is not profitable in small-scale anyhow. But if you want a bigger slice of the Pizza better you increase your computing power in whole and invest in some special hardware.
Bitcoin mining is only profitable with special hardware machines like ASIC (Application-Specific Integrated Circuit), it costs more than a thousand dollars. Such hardware is specialized to work on specific tasks like computation and problem solving that is why it is a most efficient stuff.
If you have thought of utilizing GPU for Bitcoin mining better be ready for paying electricity bills only, as this is the dumbest idea now. You may end up with nothing because the lifespan of GPU is not similar to ASIC, especially for this mining task. Still, we have seen people using this method for testing.
To sum up everything here, we can clearly say that Bitcoin may have a bright future but as of now, things are costly enough to fail the cryptocurrency market for miners.
Profit is what you get after cutting all the expenses and investments not what you just make after investing in tons.