You have successfully emailed the post. Bitcoin mining bitcoin mining web page are pictured in Bitmain’s mining farm near Keflavik, Iceland, June 4, 2016.
New bitcoin is created by computers solving complex cryptographic problems, a process known as “mining. Bitcoin’s electricity usage is coming under increasing scrutiny. LONDON — The amount of energy used by computers “mining” bitcoin so far this year is greater than the annual usage of almost 160 countries, according to new research. Bitcoin and cryptocurrency data provider Digiconomist, which estimates that 29. 05 TWh of electricity was used to mine bitcoin, compared to an estimated 25 TWh of electricity per year used by Ireland. Bitcoin is a cryptocurrency that was created in 2009.
It is designed to not be controlled by any one party and is underpinned by a system called blockchain, which records transactions. To incentivize people to do this work, which involves computers completing complex cryptographic problems, people who verify blocks are rewarded with freshly created bitcoin. Hence, this process is known as bitcoin “mining. To ensure the longevity of the system, the cryptographic problems involved in the mining get progressively harder, meaning it takes longer to earn them.