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19

Yes it will. The component you're likely to use for mining is your video card (GPU) which consumes very little power when idle but can consume a great deal under load. Check this list of common cards and consult the Watts (W) column for how many watts your card is likely to draw. Any card worth mining on will probably draw at least 100 Watts under full load. ...


13

Asking how to prevent the mining industry from being centralized into places with low electricity costs is like asking how to prevent the shipping industry from being centralized into cities that are on the coast. Both industries will tend to thrive in places where the profit margins are highest...and there's no profit margin in building a port in a land-...


10

This is a very difficult prediction to make, but there is one factor often left out of mining cost estimations: cost of hardware. When amortized over their expected lifespans, the costs of various pieces of equipment can become a meaningfully large factor in Bitcoin mining costs. In the days to come, it seems likely that FPGA or ASIC miners will become more ...


8

Blockchain.info reckons the network used 156.51 megawatt hours of electricity in the last 24 hours. This random physics page I googled up reckons a car driving at 40mph takes 100kW (so, 2.4 MWh in 24 hours). So by these (very) rough figures, running the Bitcoin network takes about as much energy as driving 65 cars. How many vehicles are used in the ...


8

According to the EIA: http://www.eia.gov/emeu/international/elecprih.html The cheapest electricity prices from their available data would be Kazakhstan at .052USD/kWh. Although electricity cost itself would not be the only determining factor of profitability, it would be a major part. Currently FPGA's seem to be the answer for best performance/kWh. Some ...


8

I think you misunderstand the problem. The reason mining is becoming impractical is because there's too much of it. It's like a restaurant that's too crowded. It means you can't get a table, but the restaurant is not going to go out of business.


8

I feel that a solution will have to be found I'm not sure I agree there is a 'problem' that needs to be explicitly fixed. The article you linked explains the relationship between price and electricity usage, now remember that price is a measure of the demand (since the supply is fixed and known). So the market acts as a naturally regulating force: as ...


7

The upper boundary for energy usage can be described with a function of the profit and energy costs. Miners won't ever pay more for energy than they get from profits. The actual energy usage formula will also have to count for the hardware costs. The formula will look something like this : max energy usage = (profit - hardware costs) / energy cost per unit ...


7

I would say any place electric heating is in use. Computers are just as efficient at heating as electric heaters are, so the Bitcoins are effectively mined for free, as far as the cost of electricity and cooling goes, the two biggest costs. (You still have the cost, and depreciation, of hardware, of course.)


7

Yes, it consumes more power. You can see, for example, by using a notebook from the battery. Turn on mining and you will see how your battery time goes down. But unfortunately I don't have any data to provide you (saying for example that mining will consume 10%, 20%, 50% more power energy)... That depends how power-efficient is your computer processor, ...


7

The parameters you need to calculate this are: E - the mining efficiency, measured in MHash/J. Data on this for various hardware is available in Mining hardware comparison (though this take into account only the card's power and not of the system it is in). Or you can calculate it for a given system by dividing the total hashrate (in MHash/s) by the power ...


7

First, mining does not require a lot of bandwidth. Whatever you have is likely enough. Second, mining profits (in bitcoin, not some currency after exchange) is determined by difficulty. Difficulty is like a level number. The higher it is, the harder it is for mining computers to hash (the under-the-hood work). Calculating mining profits only needs the ...


6

On the deflationary death-spiral part: The bitcoin wiki has a good discussion of deflationary spiral, so that's a good place to get a counter point. I'd like to make some of my own (amateur) observations: Gold is currently not the most popular money used in the world not because gold is "bad" money, but because: a) Laws make it more difficult/expensive ...


6

Of course. At the current block reward of 25 BTC per block, on average 3600 BTC are mined per day which are worth over $1 million. If it were significantly much cheaper than $1M (in terms of energy costs) to mine that $1M worth of coins, more people would do so, thus the difficulty would go up, thus the energy costs would go up. By definition, the energy ...


6

One possibility among others to encourage mining decentralization is to rely on already owned/amortized hardware to mine the currency. Most people will not by ASICs to mine bitcoin, but many already have a computer, so the jump to mining is easier if that computer is somwwhat plausible as a miner. For bitcoin, ASICs are so far ahead that mining with a ...


5

Electricity is not the only cost associated with mining. But basically, that's about what we expect. Likely mining will always be just barely profitable with the most cost-effective hardware and the lowest prices for electricity. If it's much more profitable than that, more people will mine, raising the difficulty, and thus reducing the profitability. On ...


5

If your electricity costs are high, unprofitable for you may mean profitable for someone else. Some miners may still use unprofitable ASICs either to support the network (at a smaller loss than with GPUs) or in hopes that BTC price will rise in the future (although just buying BTC in this case may be more profitable). Try to sell them. If you have no ...


5

When transactions are created they are essentially a payment promise. They are submitted as a message to the network, where every node checks that the promised money exists and then forwards the transaction. Some of these nodes collect transactions in order to create a new block. These miners are essentially participating in a giant lottery where the winner ...


4

The power consumption of your PC will greatly increase by mining for Bitcoins, especially if you are effectively mining with one or more GPU and mining 24/7. If you are not a full time miner, I suggest you mine at night when electricity is cheaper. Also there are things you can do to cut down on the electrical cost to mine, for instance use an overclocking ...


4

It is very dependent on the type of video card you have. The mining hardware comparison has some solid info on watt/hashing power. The short answer is yes, your power usage will go up a decent amount.


4

I assert that this question is virtually irrelevant based on another assertion: Bitcoin is more energy efficient and will always be more energy efficient than the systems it intends to wholly replace. In both Bitcoin and the legacy currency and monetary systems, there is energy spent for some of the key tenets of a value storage and exchange system. ...


4

The specifics of hardware (cost efficiency and hashing rate) are not very important. The availability of the most competitive mining hardware matters, but in the long run, the cost of electricity burned will tend towards the value of BTC granted to miners. obviously it won't quite get there (they have to return their hardware costs), but barring availability ...


4

This is my second answer, which does not cover your question directly but is rather given after the lengthy discussion. Bitcoin is the first approach to a distributed, cryptographic currency. As of now it has not been the last one however. Bitcoin layed the foundation to spawn a lot of similar currencies. This is not destructive to the idea. in fact, the ...


4

Basic Algebra 101: 100 W = 0.1 kW so 0.1 (kW) * 0.1399 (USD/kWh) = ~$0.014 (USD/hour) or 0.1 (kW) * 24 (h/Day) = 2.4 kWh/Day 2.4 (kWh/Day) * 0.1399 (USD/kWh) = $0.3358 (USD/Day)


4

As we've answered earlier today the description of what happens when 90% of the hashpower is lost is approximately accurate, although somewhat exaggerated: "A 90% loss will create 2 hour block intervals and take a year to resolve." Actually, it would be 100 minute blocks and would take less than half a year even assuming that no new hashrate were added ...


4

As more transactions are added to the block chain, does each individual transaction (ie. I send a bitcoin to a friend) get more expensive (in terms of FLOPS) to verify and commit to the chain? No, it does not get more expensive in terms of anything. It especially does not get more expensive in terms of FLOPS because there are no floating point operations in ...


3

The difficulty actually does not continually increase. It has continued to increase recently because hashing power has continued to increase, causing blocks to be found quicker. Difficulty is calculated by taking into account how long it has taken for the network to create 2016ª blocks and adjusting the difficulty accordingly. Here's some messing around in ...


3

There is no guarantee that transaction processing, aka "mining", will always be attractive. As such there is no guarantee that the network 'difficulty' will always go up, it fluctuates. Therefore in a scenario, difficulty can settle at a value much lower than it is today, and/or specialized computers can become more power efficient. Bitcoin can also use a ...


3

One of scrypt design goals was to make CPU and GPU performance balanced, which meant that it was far more dependent on memory speed. The GPU had a solid work around and as far as I know CPUs don't have any advantage. But that did cause it basically impossible to do scrypt mining with an ASIC unless it has a ton of memory and memory channels added in, ...


3

As Bitcoin mining is very heterogeneous (that is, a lot of people use a wide variety of hardware), figuring this out would be really hard without the use of polling (as in, asking people questions, not long polling). One would need to get some statistical data on what hardware people have, how much they spend on electricity, and how much hashpower they have, ...


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