The cost of mining cryptocurrencies is one of the most important variables for miners. In this post, we have gathered some information to discuss crypto mining energy consumption, as of November 2017.
Recently, crypto mining energy consumption levels of countries have been discussed. The mining process itself is both computationally and energy intensive, especially as the millions of processors worldwide need to be cooled, using even more power. As Bitcoin’s incredible price run is getting closer to $10,000, experts from different fields started to discuss different aspects of cryptocurrency mining. Such attention from experts is understandable considering the fact that as the market for cryptocurrencies grows, people bring more energy-hungry computers online to mine. It was recently reported that Bitcoin’s current estimated annual electricity consumption has passed 30 TWh (that is 30,000,000,000 kilowatt hours) as of November 24, 2017. Considering the fact that the average annual electricity consumption for a United States residential utility customer was slightly above 10,000 kilowatt hours in 2016, this energy can run 3,000,000 houses. In terms of monetary costs, mining cryptocurrencies cost around $1,500,000,000 annually worldwide. However, global mining revenues are over $7,000,000,000.
Earlier this year, there has been news on global cryptocurrency mining uses more electricity than Iceland, Nigeria, and some other countries. Even though the efficiency of Graphic Cards and Central Processing Units (CPU) improve on ongoing basis, number of miners and mining rigs will also increase in the future. One response to this ever-increasing energy demand came from mining farms. Recently, several mining farms started to use renewable energy sources to operate their systems. Such innovation enabled them to offer lower pricing and to attract people who are sensitive to the environment. Nevertheless, it should be noted that cost-benefit curve of these farms still can not compete with having a mining rig. Beyond any doubt, green approaches to make cryptocurrency mining more attractive in the future.