Today, the cost of energy is a major concern for the overall bitcoin mining process but many marketers and analysts are comparing it with gold mining.
While some analyst says Bitcoin is a new gold other say it is more like a gold than a currency. Is it really justified to compare the physical asset with the non-physical asset? Is there any relationship exists between these two exists? Is it really true that the Gold mining consumes 20x energy of Bitcoin mining?
Well, a recent report by LongHash points out to the “energy consumption” and the major insights states that;
• Present crypto market capitalization counts $200billion
• Gold mining alone counts $7.8 trillion
• The combined cost of mining gold and the transfer of gold is expensive than the mining cost of Bitcoin.
• The estimation of time-consumption for gold mining is far expensive than Bitcoin mining.
• Physical asset mining requires more resources than the mining of cryptocurrency. For instance; heavy machinery to dig up soil, wash the rocks and mud, and then filtering out the gold.
As an evident, LongHash projected data from the world’s largest gold mining company, Barrick Gold Corporation. According to the statistics, every year it mined an 88million oz of gold across the world. Moreover, the cost of gold production in 2017 was $4.2billion. Besides, there are brokerages, clearinghouses, and platforms such as the London Bullion Market (LBMA) contributing as the largest market for gold trading. The cost incurred by these market should also be involved while comparing gold mining and bitcoin mining.
It also reports that estimation of total diesel costs for gold mining (including, mining, transfer of gold and storage) counts around $87.3billion annually.
To narrate to – it is clear that the comparison doesn’t justify since the energy consumption for gold mining is far pricey than mining bitcoin. Furthermore, crypto miners are now looking at the more efficient and effective ways to mine bitcoin that reduces the cost and maximize the profit at the same.
What do you think about the comparison? Let us know your opinion in a comment below.