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The price of the currency is so low, does mining still have the meaning of continuing to dig?

2019-02-23 17:55

        The problem of energy consumption in mining is often asked by many people, especially when the currency price is low. So many people question the significance of mining now and continue to dig? However, many people have many misunderstandings about the use of electricity, and do not know what it does for the safe and accurate trading of digital currencies. They also don't know that even in the current downturn of the currency, mining in some places can still be profitable, because the cost of mining in each place is different.

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        Bitcoin is the first reliable digital currency with a market value of more than $100 billion. The quantitative restrictions on the entry of Bitcoin into the circulation market have created a scarcity similar to gold, so that the currency does not cause inflation. It is globally recognized and provides individual holders with the freedom to trade in digital form. In a world where inflation is imminent and the government prints more money as a solution to economic problems, Bitcoin represents the evolution of the currency to the digital age and provides a solution to the current failure of monetary policy.


        Now that we have determined the role of Bitcoin, what is the role of Bitcoin miners? In fact, the energy they use to mine cryptocurrencies protects hundreds of billions of dollars in transaction data, but it is a very meaningful behavior.


        The calculation of mining miners is critical to the operation of Bitcoin, which replaces the government or central bank to provide security for the Bitcoin ecosystem. Bitcoin mining guarantees the Bitcoin blockchain, enabling millions of people around the world to use digital currency, an anti-inflation value store. But like any other technology, mining also consumes energy.


        Compared to the energy required for daily activities, mining does not require excessive energy, such as sending e-mail, using social media, driving a car or an airplane, far more energy than bitcoin mining. But even so, the miners are still accused of mining energy consumption.


        Let's take a look at the amount of energy needed to complete a financial transaction in the traditional sense, which involves several parties. Online banking, traditional banking, and credit card companies all require expensive ledger storage systems and capital flow systems, which are inefficient, slow, and costly. In contrast, Bitcoin transactions use blockchain technology and do not pass third-party agencies and charge a fee. The miners added electricity to a block, but the amount was much lower than the energy needed by Fortune 500 financial companies to run for a few days. Imagine how much electricity you need to spend each day to sustain more than $5 trillion in daily currency transactions? In addition, the rise or fall in the use of miners' energy depends on the hashing between them, not the number of transactions being verified. Some people think that using more bitcoin will consume more energy, which is a misunderstanding.


        And it has less impact on the environment. When calculating energy use, we need to consider the environmental impact and cost of printing banknotes and producing metal coins around the world. In the digital age, why do we need coins made of gold, silver, copper or aluminum? Or banknotes and plastic credit cards? In the United States, the United States Printing Board produces 38 million banknotes a day, with a face value of about $540 million. 95% is used to replace banknotes that have already been circulated. Imagine what effect this would have on the environment? Unlike traditional mining, Bitcoin mining does not require holes or mining of metals and minerals on the ground. In contrast, traditional mining operations destroy the landscape and contaminate groundwater and soil.


        The RHY mine is located in the suburbs of the Middle East. They do not produce any pollution, and there is no other emissions other than the heat generated by the mining machine. There is also no noise pollution here. There is no environmental impact other than energy consumption. Because the electricity bill in the Middle East mine is very cheap, as low as 0.18 yuan per degree, he is recognized as a good place for green mining. At the same time, through the low electricity fee of 0.18 yuan mining, even if the price of the currency is low, the miners can still find a good profit.


        In addition, bitcoin mining is gradually becoming more energy efficient. For a mining machine, electricity is the single largest cost, so we not only have to look for cheap and clean sources of electricity, but we also need to find the most efficient technology for collecting electricity. Today, chip design has made great strides and can achieve greater mining capacity with less energy consumption. When the number of transactions increases sharply, the amount of energy used is likely to remain the same or even decrease.


        In short, Bitcoin is an environmentally friendly alternative to the energy consumed by traditional financial institutions around the world to perform similar functions. The world needs a global digital currency that is not affected by inflation and is based on a computer algorithm to ensure its security. For its great benefits, its energy consumption is only a small Small price. So if you want to mine, just dig it. This is a far-sighted investment, especially if you have low-cost mining fees.