Are you also confused about the Cryptocurrency mining phenomenon like me? Yes, it is indeed a very complex and far-fetched topic.
But it is important to know what exactly our world is going to face in near future. Satoshi Nakamoto, an unknown and imaginary character who invented Bitcoin.
It is basically a peer-to-peer electronic cash system that requires 3/4th of our electronic energy resources.
The value of this virtual cash is constantly growing day by day. Recently, its worth was around more than $10,000.
It is assumed that it’s worth will increase to more than $16,000 within a few months. If the situation goes on like this, it will soon make the US dollar obsolete.
Cryptocurrency Mining – The Online Gold Rush
It has increased from $1,000 to more than $19,200 at some point in time this year.
So, you can imagine how fast its worth is growing in today’s world.
It is created in such a process that you can literally call it mining. Or else, virtual gold may be the perfect name of Cryptocurrency mining.
If you want to chase the online currency rush, you have to crack those hashing algorithms.
And they are designed in such a difficult way that it is next to impossible to solve it. It will probably require the super computation power of 500 supercomputers.
In case, you have cracked the math problem successfully, the system allows you to add a block to the blockchain of Bitcoin. And as a reward, you win a huge amount of bitcoin.
The hashing will eventually become more difficult along with time.
Bitcoin’s ‘Hungry For Power’ Nature
As per the calculation, the cryptocurrency website digiconomics say that at this point in time Bitcoin consumes more energy than Serbia.
By the end of 2019, it will require as much amount of energy as the whole USA consumes now.
Later, it may extend to a level where it will consume as much energy as the whole world is consuming today.
This situation can lead the world to destruction soon. Cryptocurrency mining experts are building ASIC in cheap electricity areas.
So, they can bring more servers online and make more coins. As the value of bitcoin increases, its power consumption power increases.
So in order to make bitcoin with lesser energy, the value of bitcoin needs to stabilize.
Barrier Of Hashing Algorithm
Technically anyone can add a block to the blockchain. But there has to be tricky for that.
Yes, there definitely is.
Those hashing algorithm problems are so tough that it becomes a next to impossible task for you.
So, proof of work is basically the main obstacle for you to get the super expensive bitcoin.
But the story doesn’t end here. It requires such huge amount of energy that is equal to the energy that is consumed by nine houses in the USA per day.
This power hungry network is growing faster day by day.
So, you can imagine how much will be the power consumption of one Cryptocurrency mining transaction in near future.