As the number of bitcoin users increases, the number of transactions is also rising, and miners need a massive hash rate (computational power), i.e., electricity, to validate the transactions using their resources. So there is too much energy consumed in the bitcoin mining process, and many countries banned bitcoin mining because of a lot of energy consumption. For example, China is the country where local bitcoin mining and the miners from China shifted to other countries to continue their mining careers. But Ted Cruz says that bitcoin mining will help solve the energy issues. Here you can know should you jump into the De-Fi sector.
Who is Ted Cruz?
Ted Cruz is the politician as the smallest upper assembly member in the congress party in Texas since two thousand thirteen (2013). Ted was also elected as the president but was behind Donald Trump. finally, he is the junior assembly politician of congress in the Texas state.
What is bitcoin mining power consumption?
Bitcoin mining is a way to produce the new coins on the network and audit the blocks for validation. This process uses the computational power or energy of a computer. Every computer needs a CPU to give power to the computer for multiple functions. Sometimes it gets heated because of the overload of the heavy software installed in the computer. Still, the CPU is sufficient to bear the heat for regular work. Similarly, there is a need for a machine called mining hardware that makes the CPU’s power bear the heat, but it consumes 1785.5 Kilowatt for validating one block or set of bitcoin transactions up to one megabyte. This energy consumption is too high, and every person cannot afford the expense of electricity.
Need the balance between power supply and demand
In Texas, the power supply is up to ninety percent allocated in the entire state. So the energy demand is deficient in this state, but the supply is very high. So it is not good that supply is high and demand is minimum. That creates a significant gap in the uses. It will also decrease the cost of power supply. Ted said in his previous conference that we could use the additional power supply for the bitcoin mining purposes to make the demand and supply balance. You can indeed use the extra electricity for bitcoin mining, and it will give more employment to the bitcoin miners, which money would contribute to the US economy. He also said that miners would shut down the mining process during electricity or power supply shortages so it would use the reserve to serve the state. So there would also be a balance between the electricity’s demand and supply.
Benefits of an energy crisis
Ted said that mining would solve the issue of the energy crisis or shortage of energy to balance. Miners will use the electricity for mining purposes when the energy is high. When there is a power cut or power shortage due to environmental disasters or other reasons, miners will promptly stop the mining process so that the energy would tend to serve the state, and it would be a great decision. Bitcoin miners also support this statement regarding stopping the mining process during the power supply crisis.
Using of waste energy
Miners want to profit from their mining business, and they would like to use cheap energy sources to reduce their power supply costs. So they will use natural resources to produce energy like generators by using oil, wind power, and installing plants. So miners will use their brains to find the cheapest way of using electricity, and they will use the useless oil that is a massive waste in the country. The extensive manufacturing companies waste many energy resources, and miners will reuse their waste energy resources to create energy. So it will benefit the state, which means another source of energy. When there is a shortage of power supply, miners will stop their machines from consuming too much energy and use the natural energy to serve the state. The first benefit is stopping the machines so the state can use the energy, and the second is using the reusable energy created by the miners.
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