Bitcoin miners head to Canada amid China crackdown on cryptocurrency
BITCOIN miners in China are looking to other locations such as India and Canada as the Chinese authorities appear to clampdown on cryptocurrency activity and mining.
Mining is the processing of transactions in the digital currency system in which the records of current bitcoin transactions, known as a block, are added to the record of past transactions, known as the blockchain.
China recently announced a crackdown on bitcoin due to concerns about excessive energy usage in the country. Bitcoin mining uses vast amount of electricity.
China hosts the largest community of bitcoin miners and they use 0.2 percent of the country’s annual electricity production.
The bitcoin computer network worldwide currently uses as much electricity as the country of Denmark.
According to environment news site Grist, if the currency’s growth continues on its current trajectory, it will use as much as the entire USA in just 18 months’ time.
By February 2020 the environmental news site claims bitcoin would use as much electricity as the entire world does today.
And every bitcoin transaction requires enough energy to power nine homes in the US for one day.
This is due to the complex process of bitcoin “mining”. Computers have to solve maths problems in order to create more of the currency.