November 16, 2024

Taylor Daily Press

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Bitcoin mining consumes more than 2 percent of the electricity in the United States

Bitcoin mining consumes more than 2 percent of the electricity in the United States

Bitcoin is a popular trading tool. But trading cryptocurrency requires a large amount of electricity generation. Research shows that in the US alone it accounts for more than 2 percent of total supply.

Why is this important?

Bitcoin mining is a lucrative but competitive industry. Companies want to get additional power generation quickly and are setting up shop in old power plants. However, excessive desire has a significant impact on the environment.

Explained: Bitcoins are traded on a decentralized platform. To complete business transactions, data is kept in a ledger. That data must be verified individually by people who call themselves 'miners'. If enough people approve, the transaction is verified. The miner who initiates this validation is rewarded and receives bitcoins among others.

In the message: Mining bitcoins requires a lot of server power and therefore requires a lot of energy.