According to a recent study by PowerCompare, a UK electricity tariff comparison company, the average power consumption of global bitcoin mining this year has exceeded the average annual electricity consumption of 159 countries.In other words, if Bitcoin miners form a country, they can rank 61st in the world in terms of power consumption.
Why is the power consumption of "mining" so amazing?
An important reason is to prevent fraud in the course of the transaction. Due to the lack of centralized management of authoritative institutions, investors need to rely on high-performance equipment to “dig” bitcoin, which is “mining”. During the mining process, Bitcoin miners need high-performance computers to create blocks. As time goes by, block creation becomes more and more difficult, and a computer with better performance is needed, and power consumption also increases.
CNN reported that other payment networks will also generate corresponding power consumption. For example, Visa currently has two data centers in the United States, one of which uses 2% of the electricity used by Bitcoin. However, in terms of the number of transactions, Visa has to complete 200 million single transactions per day, while Bitcoin has only about 350,000 transactions per day. In contrast, Bitcoin is obviously more expensive, and other payment networks are not worth mentioning.
Bitcoin prices skyrocketed, and electricity costs also opened up
According to analyst company Digicocomist, the global bitcoin mining cost will reach $1.5 billion this year, which is based on the calculation of cheap electricity costs. If calculated according to US electricity bills, this cost will exceed $3 billion. In the UK, costs will climb to nearly $400 million.
However, the cost of expensive still cannot stop the increasing number of investors. The price of Bitcoin has risen more than 40% in the past month, which is even faster than the growth rate of electricity consumption. It is estimated that this year's global bitcoin mining revenue will reach 7.2 billion US dollars.
Cost control becomes the key in the era of “mining”
According to the bitcoin supply mechanism, the amount of bitcoin that each person can dig is proportional to the ratio of the computing power of the mining equipment to the total computing power of Bitcoin. The era of CPU mining has long since passed, and the current Bitcoin mining is an era of ASIC mining and large-scale cluster mining.
With the large-scale commissioning of mining machines, the trend of rapid growth continues. The increase in difficulty has ensured the security of Bitcoin while making the acquisition of SGD extremely difficult. If you try to dig with ordinary home computers, bitcoin will almost never belong to you, and even if you spend a few years but can't dig one, you will waste your electricity and labor costs.
In response to this industry's pain point, one Chinese company named Interconnected Online has been planning the blockchain-related industries early. At present, the company will have huge investments in three phases in overseas to build the world’s largest data center. It has built 450MW transformer substation of dual line of state grid in overseas, which can be used by 300,000 mining machines at the same time. Meanwhile, the mine has also received strong support from overseas national and local government policies and received the lowest electricity charge in the world.
In the service model, in order to allow ordinary investors to cut into the mining industry at a lower cost, the Interconnected Online Mine (http://vipidc.com) will be hosted by the mining machine in addition to the mining machine hosting service. Based on the value-added services and financial services around the mining machine, it is committed to becoming the world's largest blockchain service platform. For example, for large customers, financial leasing services can be provided; for deep players, services such as asset issuance and trading can also be provided.