Bitcoin Mining May Soon Turn Eco-Friendly

The whole premise behind Bitcoin is to democratise the economy. But increased mining costs and processing power requirements have led to the creation of few large Bitcoin mining pools run by data centres belonging to companies which invite people to invest in these centres for a small share of rewards in bitcoin.

Mining is an important operation in the Bitcoin economy. Bitcoin mining is responsible for registering and verifying transactions on the Blockchain. Mining operation requires a lot of processing power, which makes it more energy intensive. The processing power is now supplied by special hardware known as ASICs (Application Specific Integrated Circuits). Theses ASICs are developed specially for mining Bitcoin.

Increase in the number of bitcoins and bitcoin transactions is progressively increasing mining difficulty. As the difficulty increases, the need for processing power increases which in turn translates to increased energy requirements and costs. The unit prices for electricity from conventional sources is high which makes Bitcoin mining using independent rigs at homes uneconomical, thereby effectively discouraging individual miners. However, it is good news for Bitcoin mining companies who choose to set up their data centres in places with access to alternative energy to reduce energy costs and maximise profits by

Read more ... source: TheBitcoinNews