Recent studies show that the energy demands of Bitcoin mining could be very large and may lead to an increase in power consumption by five times. This would mean that more than 30% of the total electricity generated in Texas would go towards supporting the network of Bitcoin miners.
By 2023, studies suggest that Blockchain technology might use as much electric power as the entire United States.
In the West, California and Nevada have been proposed to use as much electricity as that of all Blockchain technologies combined in a year. The growth of these companies has also helped establish a large number of energy suppliers for cryptocurrency mining centers.
Currently, there are high demands for data centers in locations where electric power is cheap and reliable.
These computers that use the same technology like Bitcoin and Ethereum also produce new coins. This makes them very profitable. Companies like Facebook, Amazon, and others have started to look for cheaper mining power in places where the price of electricity is low.
Researchers said that delivery costs exceed profits from cryptocurrency by 5%. The only reason why miners continue to use expensive electricity is that it allows them to increase the potential pool of miners. The United State’s 0.3% of overall energy is going into cryptocurrency mining.
It is expected to increase by 2023 due to its growing popularity and price hike. The largest consumers of electricity will be found in northern states like New York, Massachusetts, Washington, and Oregon.
Currently, the mining of Bitcoin has become so popular that the electricity needed for this process is more than what can be obtained in 159 countries.
Currently, blockchain technology consumes 100 to 200 megawatts of power every day. This is just 5% of the estimated total increase that it will need by 2023. At present, this energy is estimated to be around 2,000 times more than the power required for mining.
Currently, the Chinese mining industry consumes more power than what can be supplied by dams in Tibet. The report suggested that mining centers could lead to the creation of heat islands. Currently, 25% of the world’s energy comes from coal power plants that are now being replaced with renewable energy sources.
Some companies have now started working on developing methods that can identify irregularities in data flow or small changes in network activity. This would help stop malicious attacks on companies that are running Blockchain technologies.