New Reports Show Bitcoin Mining Is 23 Times Less Expensive Than Gold Mining

Researchers have found out recently that actual gold mining is way more expensive than Bitcoin mining. How is that possible you ask? Well, you are about to find out in the latest bitcoin news below.

According to the researchers, a whole lot of energy goes into the process of gold mining, therefore, the entire financial system consumes and spends a lot of energy. People are quick to judge that Bitcoin mining is extremely energy intensive but the collected data shows otherwise.

Turns out that mining gold costs about $105 billion which is 23 times higher than the $4.5 billion involved in Bitcoin mining each year. Also, the recycling process of gold, paper money and minting and maintaining the banking system is extremely expensive. Gold consumes about 475 million GJ and bitcoin consumers about 180 million GJ per year. Mining bitcoin is also energy intensive but mining gold involves transportation, refining process and security which boosts the price even higher.

The reports show that 80 percent of all Bitcoin mining is based on Renewable energy which makes it more eco-friendly than mining gold. Miners nowadays are using the generated heat in the process and use it for further efficiency increase.

Despite the news that show the Chinese miners getting rid of the unprofitable mining units on social media, the hydroelectricity costs increased and were added to the costs of the mining which made an even bigger problem for the miners. However, the bitcoin mining problems that emerged with the harsh, bear crypto winter are set to decrease for the first time since 2011. CoinShares researchers explain:

 “Based on historical data on energy mix and locations of cryptocurrency mining operations in China, we have shown that contrary to the common narrative, the vast majority of global Bitcoin mining capacity (minimum 77.6%) is running on renewable energy.’’

Bitcoin mining is one of the main problems for consumers and users because apparently it takes up too much energy in the process and harms the environment. While it is extremely easy to talk trash about BTC usage, people still tend to ignore the other forms of currencies that also spend the same amount of energy.