More than 75 percent of the miners’ income is lost in paying the huge electricity bills spent in mining the cryptocurrency bitcoin.
The high cost of electricity in mining also draws attention to the growing carbon footprint of the digital currency.
According to the latest report from CryptoMonday.day, one bitcoin transaction consumes about 2,165 kWh of electricity, which is the same as the total electricity consumed in a typical American household in 74 days.
According to finance expert Elizabeth Kerr, the entire business of bitcoin revolves around its mining. The entire network is protected only by the confirmation of bitcoin transactions.
Considering the important role of miners in network security, the network also gives them miners rewards.
Elizabeth told that special equipment is used in the mining of bitcoin, which has a very high computation capacity.
These devices are the ones that solve difficult equations, and in doing so they expel tons of electricity. Minors have to pay very high electricity bills because of this.
Digital currency has always been under criticism for its carbon footprint. Many researches say that the carbon footprint of crypto mining is similar to the carbon footprint of many countries.
One study reported that the mining of bitcoin emits about 114 megatons of carbon per year, which is similar to the carbon emitted by the Czech Republic.
The report states that some miners are turning to renewable energy sources for mining. Many other miners are also looking at alternatives to other energy sources.