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WHY BITCOIN USES SO MUCH
ENERGY
By: www.ProfitableInvestingTips.com
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
One of the complaints about Bitcoin is that it sucks
up so much energy from the electric grid. A
recent estimate of how much electricity it takes
for mining one Bitcoin is 1,449 kWh (kilowatt
hours).This is the average electricity
consumption for an American household for fifty
days.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
Here is why Bitcoin uses so much energy.This
large amount of energy consumption has to do
with the proof-of-work verification system used
by Bitcoin. Miners need to solve three “complex
math problems” which are actually random
problems.The miner who gets the job done first
gets paid.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
Bitcoin’sThree Complex Mathematical Problems
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
The three problems a Bitcoin miner needs to solve
are the hashing problem, the Byzantine generals
problem, and the double-spending problem. At
first glance, one might think that someone really
smart could do very well at this because they
could figure out problems faster than others
could.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
That is not how it works. For example, the Byzantine
generals problem is a game theory problem that has
no answer that you can calculate.The miner simply
has to guess again and again until they, or someone
else, gets the answer.Thus, the prize generally goes
to the mining operation with the most computers
and the fastest computers.The prize goes to the
operation which is sucking up the most electricity to
run lots of computers and the air conditioning
needed to keep the computer components from
melting down!
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
How Miners “Solve” Complex Mathematical
Problems
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
Bitcoin miners use ASICs (application specific
integrated circuits) designed to rapidly compute
hashes.This means repetitively trying out
random numbers in a mathematical formula to
get an answer.The answers are then submitted
again and again until the miner, or someone else
gets the answer.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
Success in this game comes from how many
submissions can be made in a very short period
of time and not from any exotic mathematical
approach.Thus, supercomputers are not used in
this game but rather ranks of similar ASIC-driven
computers churning out answers very fast.Thus,
the system is designed to use lots of electricity.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
How Does Bitcoin Control the Mining of New
Tokens?
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
From what we have described so far, it would seem
that a big, efficient Bitcoin mining operation
could flood the market with Bitcoin tokens.
However, the coding behind Bitcoin fixes an
eventual limit to how many tokens can be
mined. Bitcoin controls mining by controlling
how much a miner earns.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
First of all, when the number of miners trying to
solve the problems for a single token goes up,
the target they are aiming for gets smaller.
Additionally, Bitcoin periodically cuts what they
pay in half, about every four years.The next cut
is coming soon which will make mining less
profitable per token but not reduce the cost of
mining tokens for the miner.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
IsThere aWay to Reduce Excessive Crypto
Mining Energy Expenditure?
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
The answer is yes and it is used by Ethereum for
mining of the Ether token. It is called staking.
Bitcoin uses a proof of work system, problem
solving. Ether uses a proof of stake system. In
this way of mining crypto, individuals or
companies deposit money, 32 Ether tokens, with
Ethereum.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
They are now stakeholders in the system,
validators who process transactions, store data,
and new blocks to the blockchain. When a
stakeholder vouches for the authenticity of a
block, no proof of work is required, and Ether
validation does not suck up the amount of
electricity from the grid that Bitcoin does.
https://profitableinvestingtips.com/profitab
le-investing-tips/why-bitcoin-uses-so-much-
For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.

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