BITCOIN MYTH #4:
IT IS NOT ENERGY EFFICIENT
This particular bitcoin myth is really nothing more than a talking point for the uneducated. Keeping energy costs to a minimum has always been the biggest hurdle for Bitcoin miners. Mining rigs use a lot of energy and, depending on where a miner lives, this can effect profits greatly as rates vary from country to country. South Korea is the most expensive with a whopping $26,000 to mine a Bitcoin. Mining in Venezuela, on the other hand, puts the average cost around $550. It is estimated that in the USA it costs around $4,700 to mine one Bitcoin. Solar energy is popular with some of the large mining farms that use huge amounts of electricity.
Despite the cost – it is still far cheaper to mine Bitcoin than to dig up and process gold. While it does require a great deal of computational power to unlock a bitcoin – electricity is 90% of the cost to mine it. Banking consumes an estimated 100 terrawatts of power annually – whereas mining Bitcoin uses an estimated 30 terrawatt hours annually. So, to put this in perspective – should bitcoin technology mature by more than 100 times its current market size, it would consume only 2% of all energy consumption, with very little additional costs involved. Miners are migrating to areas where hydropower, a low-carbon resource, is available and cheap. Not all types of energy generation are equally impacting the environment, and the world does not rely on the same types across states, countries or markets. Hence Iceland is now popular for bitcoin mining, with nearly 100% renewable enery used for its production.