Crypto Twitter User Claims Mining Gold is 23 Times More Costly than Mining Bitcoin
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.
— Asimov (@asimovable) March 23, 2019
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.