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Bitcoin’s Power Consumption Is Not Its Achilles Heel

Bitcoin Is Based On The Proof-of-Work

The proper functioning of the Bitcoin Blockchain requires the validation of transactions carried out on the network. These are grouped into blocks that are validated at regular intervals. Each block being added after the previous one by miners who have managed to solve a kind of mathematical equation that is quite simplistic but whose resolution is very computationally intensive.

This consensus mechanism on which the Blockchain Bitcoin is based is called Proof-of-Work (PoW).

The difficulty of the mathematical equation to solve for a block of transactions to be undermined is periodically readjusted. Nevertheless, this difficulty tends to increase constantly except during prolonged bear markets as it was the case in 2018. At that precise moment, the difficulty decreased in front of the loss of financial interest of the miners for Bitcoin mining.

Difficulty for validating a new block on Bitcoin Blockchain

The almost uninterrupted growth in the difficulty of mining Bitcoins inevitably leads to an arms race on the part of miners to obtain ever more computing power.

Constant increase in the power of Hash available on the Bitcoin Blockchain

In this way, they maximize their chance of receiving the famous reward shared between the miners who have validated a block of transactions in the Bitcoin Blockchain.

Currently, the reward for the miners is 12.5 BTC but it will decrease to 6.25 BTC in May 2020 following the third Bitcoin Halving.

This division of the reward given to miners will make the creation of new Bitcoins even rarer. This scarcity will inexorably increase the price of Bitcoin but also increase competition between miners who will continue to try to have ever more computing power available to be sure to validate the maximum number of transactions’ blocks.

The computational power of miners being obtained through the purchase of computer equipment specialized in Bitcoins mining. These are...

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