The cost of mining is growing every year

The cost of mining is growing every year

To mine cryptocurrencies in 2018, miners will need about 140 terawatt-hours of electricity. In terms of the volume of energy resources consumed, this is comparable to the electricity consumption of a country such as Argentina.

This surge in electricity demand  could serve as good motivation for renewable energy producers in the US and China to enter the markets.

“Bitcoin and other cryptocurrencies miners could require up to 140 TW of electricity in 2018, about 0.6% of the world's total electricity supply. That's more than expected from electric vehicle service in 2025,” according to a study by analyst Morgan Stanley.

According to the report Bloomberg New Energy Finance, by the end of 2017, the demand for electricity for mining grew to 20.5 terawatt-hours per year. This is equivalent to more than half the terawatt-hours consumed annually by the world's largest mining company, BHP Billiton Ltd. or a tenth of the electricity needed for industrial and domestic needs throughout South Africa.

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