That's why making bitcoins becomes expensive!
We know Bitcoin is the root of all other cryptocurrencies. It is a digital currency which is the first decentralized and first open source based digital currency. Bitcoins are usually created by mining and based on the processing power of computers to verify transactions and store transaction information. Simply put, Bitcoins are produced through mining. Bitcoin miners carry out this mining task. So it requires a lot of electricity and sophisticated machinery to produce it. Which makes its production expensive. Let's discuss about it below:
Computers are usually used to generate Bitcoins and these computers require a lot of electricity to run. A study by the University of Cambridge has shown that the amount of electricity required for Bitcoin mining can meet the electricity needs of about 167 countries in the world. About 167 countries in the world use such electricity that is consumed in Bitcoin mining. As we all know that Bitcoin is created only through Bitcoin Mining. But using this amount of electricity is very expensive and is simply impossible for many countries. However, currently, Bitcoin mining takes place in countries like the United States, Russia, China, Canada, and Kazakhstan. But an important point is that regions like China and Kazakhstan have very low electricity prices, so there are many advantages to generating Bitcoins there.
1450 kilowatt hours of electricity is needed for the computer that is required to generate bitcoins. Which is absolutely impossible for other countries. And because it consumes so much electricity, it is really expensive to produce. Moreover, due to the large amount of electricity used, Bitcoin production becomes very expensive and it becomes impossible for other countries to produce it.
The computerized work required to generate each bitcoin requires complex equipment that is not readily available and is quite expensive. Most Bitcoins are produced in the United States and Canada. The reason for the large amount of Bitcoin being produced in these countries is that these countries have easy access to complex equipment. The process of creating cryptocurrencies like Bitcoin is not so simple but they are created through complex mathematical and technology based processes. Complex arithmetic skills are not all. Also, the term for creating cryptocurrency on modern computers is called 'mining'. Its transactions are again done in blockchain technology. And all these technologies are not readily available. Moreover, the use of such technologies is very expensive. So all these reasons make bitcoins expensive to generate.
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There was a time when bitcoin mining could be done from the comfort of your own home, but mining methods have gradually become more complex over time. And along with this, the use of modern equipment has also increased. But currently, one of the main reasons why Bitcoin mining is expensive is the electricity it costs. beautiful post you have shared.
Thanks for your nice feedback
Indeed the huge power consumption is one of the reasons that you have beautifully highlighted that makes making bitcoin more expensive as it requires a great deal of computational power to mine and not everyone is able to afford this.
Thank you so much for your nice feedback
Really very nicely explained about why making bitcoins becomes expensive. Wish you all the best. Keep posting like this.
Thanks for appreciate
Bitcoin will control everything one day so it is expensive. Beautifully described.