The number varies a little bit (I’ve seen estimates 600-1200 kWh) but this is well within an order of magnitude of being correct. It’s the nature of the competitive mining network and the proof of work system: if you can spend more computing power (i.e. energy) than everyone else there are lucrative mining rewards to be had. At the same time adding more computing power to the network doesn’t add more transaction processing power, because mining difficulty is constantly adjusted to keep the speed more or less constant.
This naturally leads to exorbitant power consumption per transaction. Note that most of this power is not being purchased at EU exchange prices (mining naturally moves to where electricity can be had for cheap to maximize profits).
I just hope bitcoin will finally die. It’s literally just wasting absurd amount of energy, only to allow scammers to scam billions of dollars from victims, and regular people to steal from eachother by investing into it. I mean, if the only use of bitcoin by now is for speculation and investment, then it means that any dollar you made, you literally stole from someone else who will be left with useless bitcoin once it’s all over. There’s no value, and with the ledger getting bigger and bigger, and bitcoin more expensive to mine, it will eventually be worthless. And we all know it, so anyone who makes thousands of dollars, there’s someone who probably financially ruined himself by making a wrong and stupid investment at the wrong time.
It’s incorrect. I would comparing to fuel consumption in a car based on how many times you turned. If you make more turns on your way, it would seem your car is more efficient, when in reality there’s very little relation between turns and fuel usage, just like there is little relation between number of blocks mined and transactions.
It’s an overestimate. Right now the total cost per transaction is around 82 US dollars, which at current exchange rates is 75 Euros. That cost covers everything - electricity, rent for the building, salary for staff, taxes, depreciation of mining equipment, and whatever profit is required to keep the miners in business. I don’t know what proportion of miner costs actually goes to electricity but I expect it’ll likely be much less than 70 Euros.
Perhaps someone got that 700 kWh figure by doing the reverse calculation - looking at how much a transaction cost and then assuming that all goes toward electricity.
700kWh per transaction? That’s absurd amount of power. That’s 70 EUR of energy per one transaction at current (EU) exchange price.
Is there anyone here knowledgeable enough about this issue to say whether those numbers are correct, or just an overestimate? It feels wrong.
The number varies a little bit (I’ve seen estimates 600-1200 kWh) but this is well within an order of magnitude of being correct. It’s the nature of the competitive mining network and the proof of work system: if you can spend more computing power (i.e. energy) than everyone else there are lucrative mining rewards to be had. At the same time adding more computing power to the network doesn’t add more transaction processing power, because mining difficulty is constantly adjusted to keep the speed more or less constant.
This naturally leads to exorbitant power consumption per transaction. Note that most of this power is not being purchased at EU exchange prices (mining naturally moves to where electricity can be had for cheap to maximize profits).
I just hope bitcoin will finally die. It’s literally just wasting absurd amount of energy, only to allow scammers to scam billions of dollars from victims, and regular people to steal from eachother by investing into it. I mean, if the only use of bitcoin by now is for speculation and investment, then it means that any dollar you made, you literally stole from someone else who will be left with useless bitcoin once it’s all over. There’s no value, and with the ledger getting bigger and bigger, and bitcoin more expensive to mine, it will eventually be worthless. And we all know it, so anyone who makes thousands of dollars, there’s someone who probably financially ruined himself by making a wrong and stupid investment at the wrong time.
I hate crypto so much :D.
It’s incorrect. I would comparing to fuel consumption in a car based on how many times you turned. If you make more turns on your way, it would seem your car is more efficient, when in reality there’s very little relation between turns and fuel usage, just like there is little relation between number of blocks mined and transactions.
It’s an overestimate. Right now the total cost per transaction is around 82 US dollars, which at current exchange rates is 75 Euros. That cost covers everything - electricity, rent for the building, salary for staff, taxes, depreciation of mining equipment, and whatever profit is required to keep the miners in business. I don’t know what proportion of miner costs actually goes to electricity but I expect it’ll likely be much less than 70 Euros.
Perhaps someone got that 700 kWh figure by doing the reverse calculation - looking at how much a transaction cost and then assuming that all goes toward electricity.