Kasey Dresser | December 13, 2017
Bitcoin is a type of digital currency or “digital wallet.” It is used like regular money to transfer funds and generate currency but without a central bank. Over the last week, Bitcoin’s value has gone from less than $1,000 to $17,000. 1 Bitcoin is currently equal to 17,793 U.S. dollars. The money was originally viewed as “dirty,” being used for black market items. However this recent surge has sparked interest from mainline investors and bitcoin is looking to be worth millions more in the next month.
Bitcoin is run through data mines which are essentially large rooms of computers running an algorithm to code each transaction. The problem is the 32 terawatts of energy bitcoin will use every year. That much energy has the ability to power 3 million U.S. households; compared to Visa transactions, that only uses enough energy to power 50,000 American homes. According to the Bitcoin Energy Consumption Index, bitcoin could use enough energy to power all of the U.S. by 2019.
More than half of the Bitcoin “mining pools” are run out of China. Most the energy produced in China comes from coal firepower plants which has the potential to increase smog and pollution in the near by areas.