Global Bitcoin mining operations consume 154.9B kWh in 2023
Date
1/16/2024 4:04:24 AM
(MENAFN) In 2023, global Bitcoin mining operations consumed a staggering 154.9 billion kilowatt-hours (kWh) in total, surpassing the combined energy usage of more than 167 countries, as reported by data from the Cambridge Bitcoin Electricity Consumption Index (CBECI), compiled by a Turkish news agency.
Bitcoin mining involves the computational process of solving cryptographic hash functions, akin to mathematical problems. However, this intricate task is not performed by regular computers but rather by specialized rigs designed for cryptocurrency mining.
Cryptocurrency transactions operate through the blockchain system, an ever-expanding decentralized ledger where encrypted data structures called blocks store transaction records. Individuals engaged in this process are referred to as "miners" or "cryptocurrency miners."
Miners earn Bitcoin as a reward for generating blocks by utilizing their systems to solve mathematical problems, a fundamental aspect of the mining process.
The inception of Bitcoin dates back to January 3, 2009, when Satoshi Nakamoto, the developer of Bitcoin, generated the first block, acquiring 50 Bitcoins in the process.
Although the total amount of Bitcoin in existence has reached 19.6 million, the terms stipulate that only a maximum of 21 million can ever be generated.
Bitcoin mining involves miners solving equations, taking approximately 10 minutes to generate each block. A policy hardcoded into the algorithm dictates that 210,000 blocks are allowed to be generated during each halving, a mechanism designed to cut the generation in half and counteract inflation.
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