Bitcoin Mining Energy Myth

Photo by Karsten Würth on Unsplash

Will the US ban Bitcoin mining?

Let’s find out.

What is Bitcoin mining?

It is a validating process for Bitcoin transactions to go through; nodes are miners working to resolve computer puzzle games and try to guess the correct number of sequences to process the payment.

It is a technology advancement and energy consumption game.

Master two factors that will help you to win the game:

• faster speed of the computer power
• a large amount of energy consumption

Both factors bring down the cost of obtaining Bitcoin, making the process financially feasible.

It means Bitcoin needs to stay at a certain price level to make participants contribute to the mining game.

Creator’s assumption

Satoshi argued that Bitcoin mining mimics gold mining. The assumption was built on the top that Bitcoin worthed more than the energy consumption contributed.