Effort, time, money, and energy. These are just four out of tons of other material and abstract things that a btc miner needs in order to make Bitcoins come to life. Physical energy is not the only energy that a person needs in producing Bitcoins but he also needs a different kind of energy to be available at all times and that is electrical energy. So how is the digital gold of today, the Bitcoin, produced? What is the significance of electricity behind it?
Before anything else, btc miners need a lot of equipment to get things going. This would include having an open source and basic software such as GUIMiner, a frontend for Bitcoin mining which provides a convenient way in graphical interface operations. When it comes to hardware, motherboard, graphics processing chips are needed as well as a fan for cooling down the equipment.
Since bitcoin has now heightened the interest of a lot of people, the demand and use for equipment with higher computing power grew as well. Aside from the rise of the people’s interest in Bitcoin, the puzzles and math problems that bitcoin miners have to solve have become difficult as well. In line with this, bitcoin mining centers have become evident and present as well. These centers are usually found in places where electricity is said to be inexpensive or free such as in China since they provide free hydroelectric power.
With the growing demand for more equipments to be used in solving mathematical puzzles to earn Bitcoins, the rise for the demand for inexpensive to, as much as possible, free electricity has been evident as well. Such is the case in Iceland where bitcoin mining has become a fad. Mining centers have already been proposed since Iceland provides cool temperature that could compromise and even out the hot temperature that equipments blow out when the system is at use. Also, Iceland’s energy is inexpensive since it is harvested from wind and hydroelectric power which are both renewable resources. Despite this proposal and despite Iceland having inexpensive electricity, officials have turned down this idea since bitcoin mining centers are assumed to consume about 840-gigawatt hours of electricity compared to the 700-gigawatt hours of energy that the locals consume every year.
With this idea in mind, it is evident that the electricity which is supposedly provided for the residents will not be enough to power their homes since bitcoin mining centers will be consuming more than what the country can provide. Officials also find this wasteful becauseaside from the fact that massive amounts of energy will be used, the thought of producing something that has no physical existence and value to humans is not much of a great idea to focus on.
As a solution to all the concerns over power consumption, countries shall then focus on having bitcoin mining centers licensed and bitcoin transactions regulated.