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Friday, December 8, 2017

Bitcoin power usage causes city-wide blackouts!


Bitcoin is now being blamed for blackouts.

We've talked before about the reaction of some environmental groups becoming anti-bitcoin based on it's power usage. But all that aside, there's another issue worth addressing - strain on power grids.

Today, the blame came from Venezuela and sure - their infrastructure is much more outdated than more developed nations. However - not by as much as you probably think. America and European power grids haven't received much in terms of upgrades in nearly 40 years.

At the current growth rate, some experts say "Bitcoin blackouts" could hit the USA as soon as 2020.

The world's largest Bitcoin mine in China, which is running 25,000 processors currently has a power bill of $40,000 per day, and was recently warned they may have to lower usage or the grid could hit capacity.

However it's also worth noting cause of this problem, and the cause of Bitcoin's other big problem - slow transactions, is one in the same.  The current network model isn't sustainable on all fronts.

Debates on the solution will continue. Lightning network? Larger block size?

This article isn't about that debate, but something needs to be done sooner than later.
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Author: Mark Pippen
London News Desk