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Encryption can be lucrative, but with environmental costs

Lansing, Michigan — Luke Lauterback has begun Mining cryptocurrency Because he was cold. Mining cryptocurrencies on his underground computer replaced the space heater.

“At some point, I realized it was like throwing away my electricity and money,” Rotorbach said. “So,’Well, my computer gets hot. Why don’t you try this cryptocurrency and see if you can make a few dollars trying to replace the space heater?'”

Cryptocurrency mining requires a lot of power, so the rotorback computer gets hot enough to keep him warm.

According to the report, a single Bitcoin transaction uses the same amount of power that the average American home consumes in a month. Digiconomist, And is responsible for about one million times more carbon emissions than a single visa transaction.

Cryptocurrency mining on his underground computer has replaced their space heaters.

Cryptocurrencies like Bitcoin are basically digital money, and those who mine it help create it. Mining basically uses a computer to verify cryptocurrency transactions.

Computers perform complex math problems through mining software. Every time the computer solves a math problem correctly and validates a transaction, a small amount of cryptocurrency is created. The percentage of that new currency goes to the miner.

For one husband and father, Lauterback, being a miner was quite beneficial.

For one husband and father, Lauterback, being a miner was quite beneficial.

“Whenever the computer is idle, it mine for about 23 hours a day,” he said. “I’ve been doing this for about six months and I’m making about $ 230 a month.”

“Even if you don’t know anything about technology, you can easily get started with crypto mining in just a few minutes,” he added.

It’s so easy that cryptominig has taken off in recent years. Small investors, backed by their support for billionaires like Elon Musk and currencies like Dogecoin, also promoted the spread of practices.

A January 2021 Survey by New York Investment Group We found that an estimated 22% of adults in the United States are investing in Bitcoin. Of these respondents, 83% are considering including Bitcoin in their future financial plans.

So what’s the problem? Environmental impact of all computers mining crypto.

Thomas Holt is the director of the Criminal Justice School at Michigan State University. He studies cryptocurrencies and says that if they continue to grow, their environmental impact can be enormous.

“Mainly because we use so much electricity to produce the mine, the impact can be quite large,” he said.

“Mainly because we use so much electricity to produce the mine, the impact can be quite large.”

China does most of the world’s crypto mining, “most of their electricity depends on coal.”

“Therefore, the impact of coal on the environment is part of the problem,” Holt said.

Bitcoin is one of the most environmentally friendly currencies, depending on how currency creation works.

Bitcoin is one of the most environmentally friendly currencies, depending on how currency creation works.

“They use the so-called” proof of work “to validate transactions within the blockchain,” Holt said. “That basically means that you have multiple computers, multiple mining systems, all trying to solve math puzzles at the same time. The first one to get it right is , Get credit on the blockchain. “

Some new cryptocurrencies are moving away from the “proof of work” and using the “proof of stake”.

The “Proof of Stake” uses much less energy, but retains a more sustainable future for cryptocurrencies because it is obtained from only one computer that eliminates mining.

Ethereum mined by Rotorback is one of the cryptocurrencies that will switch to the “Proof of Stake”.

Ethereum mined by Rotorback is one of the cryptocurrencies that will switch to the “Proof of Stake”.

“Ethereum will move to Ethereum 2.0 in the next few years and will stop mining to consume less electricity than it does now,” said Roterbach. “What that means to me is that I can no longer mine Ethereum, and this will probably not be profitable within a few years, but it will be eliminated, so it’s for the crypto community That environmental barrier will be positive overall. “

The TRG data center in Houston, Texas, investigated which cryptocurrencies were the most environmentally friendly and ranked them by the amount of energy needed to power each transaction.

click here To read that list.

This story was originally published by Sarah Grimmer at the Scripps Station WSYM In Lansing, Michigan.



Encryption can be lucrative, but with environmental costs

Source link Encryption can be lucrative, but with environmental costs

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