ALBAWABA - In a remarkable development, Bitcoin, the leading cryptocurrency globally, has outpaced 167 countries in electricity consumption for the year 2023, utilizing a staggering 154.9 billion kilowatt-hours.
Derived from data sourced from the Cambridge Bitcoin Electricity Consumption Index, the mining and circulation activities associated with cryptocurrencies, gaining increasing traction in financial markets, surpass the electricity consumption of numerous nations.
Cryptocurrency transactions are facilitated through blockchain systems, characterized as decentralized, continuously expanding ledgers that store transaction records in encrypted data structures called blocks, interconnected for secure storage.
Individuals involved in earning cryptocurrencies are commonly known as crypto miners, with the process termed cryptocurrency mining.
Cryptocurrency Market Value Hits $1.89 Trillion
The global cryptocurrency market has soared to a valuation of $1.89 trillion, featuring 12,033 different currencies traded across 965 exchanges worldwide. Bitcoin commands 49% of the cryptocurrency market, boasting a value nearing $921 billion.
Despite exceeding the electricity consumption of 167 countries globally, Bitcoin is expected to rank 26th in the list of nations with the highest electricity usage.
Bitcoin Earnings Tied to Mathematical Analysis
Within the cryptocurrency ecosystem, users engaged in Bitcoin mining solve mathematical equations on the system, creating blocks and earning Bitcoin in return. Satoshi Nakamoto, Bitcoin's creator, initiated this design, earning 50 Bitcoins on January 3, 2009, for solving questions and creating the first block.
Countries with significant shares in Bitcoin mining include the United States, China, Kazakhstan, Canada, and Russia. The United States stands out for its easy access to the technical hardware and infrastructure required for mining, while Kazakhstan and China gain popularity due to lower electricity costs.
