On May 28, 2021, Bitcoin experienced a short-term decline of $800, with a single day sharp drop of over 6%. According to relevant reports, Bitcoin's unit price rose from $9000 to 64000 in a year, and then fell below 30000
On May 28, 2021, Bitcoin experienced a short-term decline of $800, with a single day sharp drop of over 6%. According to relevant reports, Bitcoin's unit price rose from $9000 to 64000 in a year, and then fell below 30000. As a result, the energy consumption issue of Bitcoin mining once hit the hot spot. Many people are curious about how Bitcoin mines and why it wastes so much energy. Let's follow Uncle Luo and take a look.
Before understanding how Bitcoin mines, let's take a look at what virtual currency is? Unlike the currencies we usually use to purchase things, virtual currencies are not issued uniformly by the government. They can only be used and traded in the virtual world, taking Bitcoin as an example.
Although its publisher is a network figure named "Nakamoto Cong", he invented an algorithm to specifically fix the transaction content into a data, which is a 256 bit binary number. For computers, calculating this number takes less than one thousandth of a second, and once calculated, this data cannot be changed again.
But there is a problem at this point, because Bitcoin's calculation method is decentralized, which means that everyone can participate, and inevitably faces the question of who calculates it? So "Nakamoto Satoshi" stipulated that the first 10 digits of this binary number must all be zeros. If anyone calculates a number that meets this rule, they can receive a reward of 50 Bitcoins, and this data can be placed on the entire Bitcoin blockchain. This reward is halved every four years, from 12.5 in 2018.
Upon hearing this, you may understand that this is another kind of "lottery", where whoever gets the "winning" number is the winner. And for every new person who joins, the data they receive is a block of data that has been previously calculated, but a random number is added to it later. Whoever calculates the next number that meets the regulations, "Nakamoto Cong" will place this data block at the end of the entire data, and then reward Bitcoin to the person who calculates it. Then, based on this data block, the next number will be calculated, and so on.
It must be mentioned here that every calculation in this process is random, which means that if it cannot be calculated at once, it must be continued. This is completely a process of taking chances. During this process, people gradually discover that whoever has a better graphics card is more likely to "win". Then, they also realize that it is better to work together alone, just like buying lottery tickets together, and the number of wins is calculated based on how much effort everyone puts in, This is also known as the "mining pool".
As more and more people participate, their mining machines become more advanced, and their computing speed becomes faster. "Nakamoto Cong" has long stipulated that only one person can "win" in 10 minutes, so the rule gradually becomes, the top 20 is 0, and the top 30 is 0... As the value of Bitcoin increases, people find it increasingly difficult to "win", and in this process, the consumption of electricity resources also increases, Until now, 10000 "mining machines" can consume 45 million kilowatt hours of electricity in a month.
That's why the authorities have repeatedly criticized Bitcoin for wasting power resources. Uncle Luo, let me tell you this. There is a group of people in the world who have the most advanced computers in their hands. These computers do nothing else every day and constantly "mine", basically 24 hours a day. However, what they produce is just a data block. But what is the purpose of this data block? Some people online say it can store value and avoid risks, but in Luo Shu's view, it is all castle in the air, invisible and intangible. In this process, the electricity and energy they consume are actually real.
What is the concept of 45 million kilowatt hours of electricity per month? According to Uncle Luo, the monthly electricity bill for a family of four is about 100 yuan. In the summer, if the air conditioning is turned on, it may be 200 yuan, and the maximum electricity consumption is about 300 kilowatt hours. That is to say, the electricity used by some data companies for mining is probably not enough for this family of four to use in 10000 years. The electricity consumption is so high, and the coal consumption is about 15000 tons. No wonder some people should exclaim, Is this digging a "coin" or a "pit"?.
You must be very confused. Are there so many people in China who are "mining"? Indeed, in recent years, virtual currencies have swept the world, and many people have been driven by the huge profits and started to engage in "mining". The resulting price surge of graphics cards, hard drives, and other products is no longer a single event.
Because it requires a large amount of electricity, finding cheap electricity is the most important thing for 'miners'. According to network data, due to the extremely cheap electricity in China, China has become the main distribution area of Bitcoin computing power, mostly concentrated in places such as Xinjiang, Inner Mongolia, Sichuan, and Yunnan, where electricity prices are cheap.
Data Center
Data Center
It is absurd that even though it is a serious energy consumption issue, the leading figure in the technology industry, Musk, has publicly claimed that Bitcoin has made significant contributions to global environmental protection. Recently, it seems that the situation is not correct and he immediately changed his mind, which is simply a slippery slope.
Tesla Factory
Musk's "madness" is well known, and according to Tesla's financial report, its speculation in Bitcoin contributed $101 million to the company's profits, but too much is not enough. Bitcoin immediately showed a foam state after the boom, and it fell in a direct "waterfall" manner. Tesla was directly trapped, because there are many "mine owners" who have suffered huge losses from investing in Bitcoin.
Especially on May 30th, coinage investors woke up and found that the value of Bitcoin had fallen again. The mining owners who had made money in the early days may now have to pay even the principal. Some investors lamented that they were lucky enough to run fast and end up earning a little bit. However, some investors were so tearless that their funds were trapped and nothing was left. There were also "Mengxin" who had just entered the market for less than a month, Every day when I open my account, I feel trembling, which is different from those who work hard in the stock market.
What do you think of special coins? Remember to tell Uncle Luo. Zhang Yan sees the world, Uncle Luo talks about the ups and downs, and friends you like remember to follow him.
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