It’s not news to say that Bitcoin mining operations have had an effect on energy consumption; there has been a lot of debate surrounding the subject already. But there has recently been further links found between Bitcoin mining and energy consumption that are worth talking about.
There has been a rapid increase in Bitcoin mining, especially in some countries, and it looks to have been the cause of widespread blackouts in those areas.
For a country like Venezuela, its current financial crisis is leading people to mine more and more Bitcoin in order to make any money at all, but the mining seems to have a cost as well, in the form of blackouts. All the mining is pulling every bit of energy towards it, leaving little behind to power homes, for example.
While not everyone believes Bitcoin mining to be that damaging to the environment, blackouts are no small thing. It may be the start of the energy predictions relating to Bitcoin mining, such as Eric Holthaus’s prediction that by 2020 the electricity demand for Bitcoin mining will likely be more than the available supply has.
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