Mining Bitcoins Is Cheaper Than Mining Gold — Research
Mining physical gold turns out to be more costly than mining bitcoin, as pointed out in a study published by an investor from Panda Analytics, Vladimir Jelisavcic.
The analyst calculated that 92 million barrels of oil, equivalent to $6 billion, are annually spent for gold mining, while cryptocurrency mining consumes 4344 megawatt-hours equal to $4.3 billion. Thus, 0.27% of the world oil consumption accounts for mining physical gold, and the digital one requires 0.7% of the planet's electricity.
Good to see this piece generating a lot of debate. Bitcoin uses a lot of energy, but not nearly as much as physical gold mining https://t.co/E9biEYbZ8Y by @VladimirVjel cc @nathanielpopper @NeerajKA @galka_max— LongHash (@longhashdata) September 14, 2018
According to the researcher, the decentralized Bitcoin network does not include a structure responsible for reporting on energy consumption. To obtain the data, Jelisavcic used the top-down and the bottom-up approaches. The first method calculates energy consumption by the block rewards. The second is based on a hashrate, which can be observed by the difficulty of a block.
The average annual energy consumption for mining is more than 4300 megawatt-hours. The analyst compared this figure to the expenditures of the largest New York power plant, Ravenswood, which consumes almost two times less — 2480 megawatt-hours.
Recently, Innosilicon has released an energy-efficient miner, which consumes only 68 watts per terahash.
Jelisavcic expressed the opinion that the world would be better if people shortened gold mining and, instead of it, started using bitcoin as a means of savings.
To date, 3664 ATMs have been installed in the world, with the highest concentration in the US and Canada. According to the analysts from MarketsandMarkets, the volume of crypto ATMs market will increase almost nine times by 2023, amounting to more than $144 million.