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The extraction of bitcoins supposedly consumes much more energy than mining gold of an equivalent value. This is according to a recent report published by the Nature International Journal of Science and compiled by Max J. Krause and Thabet Tolaymat.
He points out that the process of energy-intensive extraction of digital currencies such as Bitcoin, Litecoin, Ethereum and Monero consumes mega quantity of electricity compared to the extraction of metals such as gold and platinum.
The document notes that 17 and 7 megajoules of energy are needed to extract a dollar value of Bitcoin and Ethereum respectively. On the other hand, five to seven megajoules of energy are needed to extract gold and platinum of the same value.
The research emphasizes that the figures of the crypto energy consumption illustrated are independent of the energy required for cooling systems and other peripheral operations. This means that the real figures could be much higher.
The Nature International team estimates that only Bitcoin mining consumed about 948 megawatts in 2017. The authors have arrived at this figure taking into account the capital cap share of 50% of the currency and assuming that the consumption of energy Bitcoin accounted for about half of total industry consumption. .
At the time the report was compiled, Bitcoin's market capitalization was about $ 125 billion, while the market valuation was $ 250 billion. It is worth noting that these estimates date back to 30 June.
Having said this, the extraction of cryptocurrencies is intensifying in the face of an increase in energy consumption and costs. Large companies continue to dominate the space, which mainly favors efficient miners with access to cheap electricity. The scenario has largely contributed to the erosion of the skrocket, which has led to greater difficulties in the mining sector and to the growing energy and consumption needs.
In progress Bitcoin against the debates on the extraction of gold
At the moment there are many debates in progress on bitcoins compared to the energy consumption of gold mines. The final results, however, reveal strong disparities. For example, estimates of energy consumption of mining encryption are deeply conditioned by the nature of energy sources and the efficiency of mining equipment, and therefore reliable estimates are difficult to find.
On the other hand, there are many hidden elements in the production of gold. According to a recent report by the Rocco Report, tire consumption, for example, is an indirect but important detail when considering energy consumption in the sector.
Please quote the latest figures on the use of tires reported by Barrick Gold. Apparently, the company consumed over 25,000 tons of tires in a year. Many were huge 13-foot tires, 11,860 pounds Caterpillar, used by giant trucks in mining sites. Prudent estimates, according to the report, indicate that at least 50 barrels of oil are needed to produce only one of these tires.
The report also notes that most gold mining companies do not report total direct energy consumption data. And so the debate on bitcoins and gold mines will remain incredibly opaque until more complete empirical research is conducted.
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