Bitcoin (BTC) has several times been compared to gold due to the fact that it has several similar features to the precious metal. There is one interesting thing between these assets, Bitcoin, and gold can be mined. According to the Twitter user Asimov, mining gold is 23 times more costly than mining Bitcoin.

Bitcoin Or Gold Mining?

As per this Twitter user, gold mining has a yearly cost of $105 billion with 475 million GJ consumed. Meanwhile, gold recycling costs $40 billion a year and it uses 25 million GJ. Meanwhile, paper currency and minting cost 28 billion per year and it consumes 39 million GJ. The banking system has a yearly cost of 1,870 billion and it consumes 2,340 million GJ.

The last two sectors that were analyzed are governments and Bitcoin mining. The first thing to mention is that governments cost $27,600 billion a year and consume the energy of 5,861 million GJ. Bitcoin mining activities consume 183 million GJ and it has a yearly cost of $4.5 billion.

Although it is clear that Bitcoin mining is much cheaper than gold mining, it might be possible to think that Gold has a much larger valuation than Bitcoin. Thus, if Bitcoin increases in price, the yearly cost, and energy used by the network would increase as well.

There are several experts and individuals that attack Bitcoin for being costly to be mined and for consuming large amounts of energy. Until now, Bitcoin remains cheaper than gold to be mined and to run. The main problem is related to what will happen in the future once the price of the digital asset grows to new highs.

It is worth mentioning that Bitcoin consumes as much energy as Austria or Argentina, which is already a very high level. The energy is consumed by miners that have to process very difficult equations to confirm the transactions that are processed on the Bitcoin network. Miners are rewarded with BTC each time they find a block with transactions. At the time of writing, Bitcoin’s hash rate is 48 million TH/s.

Get Free Email Updates!

*Action Required* Enter Your Email for Trending Crypto News & Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \\ Investment Disclaimer

Coin Market Cap Price Change 24 Hour Volume
BTC $218.96B $12,312.6306 1.96% $19.98B
ETH $34.14B $320.0914 0.68% $6.2B
XRP $18.37B $0.4316 -2.61% $1.49B
BCH $8.18B $457.9855 -2.43% $964.39M
LTC $7.43B $119.0718 -4.53% $1.72B
EOS $5.92B $6.4276 -7.18% $1.99B
BNB $4.84B $34.2996 -3.16% $282.35M
BSV $3.7B $207.2718 -8.95% $344.21M
USDT $3.54B $0.9892 -0.36% $16.32B
TRX $2.39B $0.0358 -3.04% $488.17M

Get 3 Free Bitcoin eBooks for Limited Time Only

Receive three exclusive user guides detailing a) What is Bitcoin b) How Cryptocurrency Works and c) Top Crypto Exchanges today plus a bonus report on Blockchain distributed ledger technology plus top news insights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.