Analysts are concerned that Bitcoin and cryptocurrency mining centers are spending too much electricity, and that the process of verifying cryptocurrency transactions could worsen the global

Justification of Mining in Bitcoin and Cryptocurrencies

In December 2017, several analysts criticized the electricity consumption of Bitcoin and cryptocurrency mining centers, calling the mining process an "environmental disaster." Earlier Cointelegraph (19459003)

Smari McCarthy of Iceland's Pirate Party reported that excessive consumption for Bitcoin mining is not practical because of the use of Bitcoin is for "financial speculation."

"We are spending tens of thousands of megawatts on produc ing something that has no tangible existence and no real use for humans outside the realm of financial speculation. That may not be good. "

If environmentalists and analysts perceive the use of speculative power, the consumption of a massive amount of electricity could be considered impractical. However, the main application of Bitcoin is not financial speculation. In Venezuela, for instance, in the case of an institution, the local currency is in the middle of the country.

In Venezuela, for instance, local residents are using Bitcoin to order food, basic goods and medicine from outside the country because of the Venezuelan bolivar, the country 's national currency, has lost almost all of its value, and has become virtually worthless.

Bitcoin' s proof – of – work (PoW) consensus algorithm uses global computing power to verify transactions and produce new cryptocurrencies through a mathematical system. The PoW system of Bitcoin disallows hackers from gaining access to the decentralized protocol and enables the Bitcoin Blockchain network to settle transactions on a peer to peer basis. Hence, to undermine the consumption of electricity to power decentralized currencies that are imposing a major impact on the global economy is illogical, and it is particularly ill-judged to claim that the applicability of cryptocurrencies and blockchain technology is limited to financial speculation.

Speculation exists in any sector that is in the early stage of growth. In the beginning, investors are going to speculate on the value and price trend of cryptocurrencies and crypto-assets. However, as the industry matures and the market evolves,

<img alt=" Renewable electricity generation "src =" http://cointelegraph.com /storage/uploads/view/31a1a0dd8ef27b28d901c37f11f55ccb.png "title =" Renewable electricity generation "/>

Probably the one that market solves

Evidently, electricity costs (19459003) In regions like northeastern China, Chile, Peru and Chile, the asociation of mining and mining Chile for instance, in 2016, produced so much more energy that it was given away most of i t for free. Since 1945, the Government of Chile has made more solar plants and focused on building infrastructures.

It is important to recognize the importance of nonrenewable and expensive electricity. is in the interest and benefit of cryptocurrency miners. It is for this particular reason that many miners in China, Chile, Norway and Iceland in 1945.

In Iceland, almost 100 percent of energy and electricity are generated from renewable sources. Hydroelectric power and geothermal energy account for 99.8 percent of Iceland's electricity. In Norway, another popular country for cryptocurrency miners, hydropower accounts for a staggering 95 percent of electricity generated by the country. In both countries, electricity used by households and utilities are mostly limited to 20% of the world's energy consumption.

It is beneficial for miners to relocate to countries like Iceland and Norway. As such, as a result, target renewable sources of electricity in countries with abundant supplies of energy. Cryptocurrency is a non-issue for the world and the environment

In an interview, Johann Snorri Sigurbergsson, an HS Orka spokesman (19459007)

"If all these projects are realized, we won", 1945, c. do not have enough energy for it. What we're seeing is … you can almost call it exponential growth, I think, in the [energy] consumption of data centers. "

There's no reason to believe in that scenario. But let's not forget how does the market economy functions. If energy becomes expensive in Iceland due to scarcity, cryptocurrency will inevitably relocate to other regions with cheaper electricity.