Cryptocurrency mining
When the blockchain was smaller in the early days of cryptocurrencies, anyone with a suitable computer could participate in mining. However, mining is now out of the reach of most ordinary people due to the enormous cost involved, and it is banned in a number of countries.
The problem is that the mathematical problems required to validate a new block can only be solved by trial and error and require a great deal of computing power as well as electricity.
“As the Bitcoin network grows, it becomes more complex, and requires more processing power,” said Spencer Montgomery, founder of Uinta Crypto Consulting. “The average consumer used to be able to do this, but now it is very expensive.”
Bitcoin mining will also use a huge amount of energy, estimated at about 0.21% of the world’s total electricity. This is similar to the amount of energy that Switzerland uses every year. Therefore, most mining operations are done by specialized companies or groups that pool their resources together to verify the validity of transactions.
