The dark side of Bitcoin

Photo by Thought Catalog on Unsplash

You want to buy something from another country. But instead of paying through your credit card, you want to buy it by making your payment through Bitcoin. You want to do that because paying through Bitcoin is faster and it does not involve providing your credit card number or other information to the seller. 

You just need to have a digital crypto wallet that stores your cryptocurrencies and you just need to transfer it to the crypto wallet of the seller. It’s quite a quick and easy process to pay through Bitcoin, but the transaction also needs to be validated and verified by the Bitcoin network to make the transaction legit.

Making a payment through Bitcoin is easy, but the process required to verify the Bitcoin transaction consumes a lot of energy. This impacts the environment in a negative way. And that is the dark side of Bitcoin. 

The process undergone to validate and verify a Bitcoin transaction is known as Bitcoin mining. After a particular Bitcoin transaction takes place, several Bitcoin miners around the world equipped with supercomputers and Bitcoin mining rigs compete with each other to verify the transaction first. 

This competition takes place among all Bitcoin miners around the world because the Bitcoin network rewards miners with a few Bitcoins after successfully verifying a block of Bitcoin transactions. And we already know how high the value of one Bitcoin is. 

Anybody from any part of the world can become a Bitcoin miner and join the global Bitcoin network and participate in Bitcoin mining. People have been constantly upgrading their supercomputers and Bitcoin mining rigs to improved versions so that they can verify the transactions quicker than the other miners. 

This has led to the soaring of energy consumption throughout the world for the sake of Bitcoin mining. Some countries have even set up big rooms full of supercomputers just for the sake of Bitcoin mining. These setups consume a huge amount of electricity every day.

Becoming an independent Bitcoin miner has not become easy after big companies and countries have also started participating in the process of Bitcoin mining. This is because big companies and many countries have invested huge amounts of money just to build big Bitcoin mines so that they could mine Bitcoins faster.

The amount of electricity required to mine only one Bitcoin is almost equal to 9 years worth of electricity consumption by an average American household. 

Since people are so engrossed in the competition to mine Bitcoins just to get rewarded with more Bitcoins, they have started to buy more advanced technology and powerful setups. This has also led to the production of more and more electronic waste. 

The high amount of electricity consumption and the high production of electric waste is what makes Bitcoin unsustainable to the environment. 

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