Impressive but Unsustainable: Environmental Troubles of Bitcoin.

Abstract

This paper takes a deep dive into the analysis of blockchain technology as used in the financial services industry. The research article focuses on one of the major cryptocurrencies to ever arise from blockchain technology; the Bitcoin. Bitcoin is the most common and highly valued of the currencies to ever exist both crypto and fiat. The focus of this article is on mining of this invaluable coin. The analysis of energy usage in mainframe servers that run the bitcoin mining algorithms is my key concern. This is brought about by a concept called proof of work; which is basically trying to be the one to resolve the next block; computing the mathematical answer to a given transaction such that it is agreed upon by all other nodes in the network. To do this, one must acquire the most powerful computers out there or join a mining pool; which is a group of individuals or firms who bring their hardware together to form a near-supercomputer machine. These setups consume a lot of power and emit quite a lot of heat requiring enormous amounts of water for cooling.