Tesla has bought $ 1.5 billion worth of bitcoins and is ready to accept it as a payment in the future. But the rising prices of bitcoin are more beneficial for the people involved in the mine business.
Cryptocurrency Bitcoin was invented in the year 2008 but its usage has increased in the last few years. A study at Cambridge University states that the amount of electricity spent in mining for bitcoin is used in Argentina. Let me tell you that in the past, Tesla owner Elon Musk has made up his mind to invest in Bitcoin.
Bitcoin prices fall drastically due to power crisis in China
According to data website CoinMarketCap, the price of bitcoin has dropped due to the power failure in Xinjiang area of China. This area of China has an important role in bitcoin mining.
This has exposed the basic weakness of this system to the people. Although the bitcoin network is decentralized, it is not so with its mining.
How much electricity does bitcoin eat
The electricity spent in making bitcoins can fulfill the electricity needs of a big metropolis like Mumbai. According to a study by Dutch economist Alex de Vries, bitcoin produces 38.10 MT (million tons) of carbon footprint every year.
According to a study, the carbon footprint of Mumbai is around 32 MT and that of Bangalore is 21.50 MT. Recently, Microsoft co-founder Bill Gates said in an interview recently that bitcoin does not have as much electricity as it costs per transaction.
Research in Cambridge has revealed that a lot of electricity is required for mining cryptocurrency. Along with this, heavy computer calculations are also required to verify the transaction.
According to the researchers, in Bitcoin mining, electricity of 121.36 terawatt hours is used in a full year. As long as the price of the currency will not come down, there is no possibility of any decline in it.
If critics are to be believed, Tesla’s decision to invest in Bitcoin weakens its environment.
Tesla made a big announcement
Bitcoin price reached a record level in February and touched a record of $ 48,000. The price increase was only after Tesla’s announcement. It was said in the statement that he has bought 1.5 billion dollars worth of bitcoins and he is ready to accept it as a payment in the coming time. But the rising prices of bitcoin are more beneficial for the people associated with the mine business as the demand for machines will increase further.
Will it ever fall
According to Michael Rauch, who is part of Cambridge’s research team, as prices go up, the energy consumption will increase. Rauch had said in an interview to the BBC that Bitcoin makes a lot of electricity and this is because of its designing. Nothing is going to change because Bitcoin will continue to consume electricity in this way until the price of Bitcoin decreases.
Shocking results
The results produced by an online tool prepared by Cambridge were shocking. According to these results, the consumption of bitcoin is not only more than Argentina and Netherlands but also more than United Arab Emirates (UAE) and Norway. According to these results, 121 terawatt electricity in Argentina, 108.8 terawatt electricity in the Netherlands and 113.20 terawatt electricity in the UAE and 122.20 terawatt electricity in Norway are used in a year. All electric kettles can be run in the United Kingdom for the next 27 years with the amount of electricity used in Bitcoin.
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