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Friday, September 24, 2021

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Bitcoin mining and energy consumption, central axes of the new edition of DecentralizAR 2021




Sebastian Nill, creator of @ Espacio.weiaut and CEO at @aeternambroker, explained that electricity is the raw material of mining. He also stressed that mining in Argentina is very economical due to energy subsidies and the exchange rate gap, since miners charge in parallel dollars but pay services to the official.

For his part, the electrical engineer, teacher and member of Bitcoin Argentina, Julián Dragonsc, detailed that there is currently an energy consumption of 70W per user of Bitcoin and that between 35% and 70% of that energy is composed of renewable sources.

“We can compare this consumption with the consumption for heating or cooling and it is less than that required for the extraction of copper and gold. If we cancel consumption above 70W per user, we should say goodbye to YouTube, Spotify and live TV. , for example, “he said.

Focused on the issue of energy cleaning, the Former Undersecretary of Renewable Energies, Sebastian Kind, remarked that during the last years the use of wind and solar energy in Argentina increased notably, reaching nearly 10% of the electrical energy matrix last year and marking a peak of 24% in recent days.

However, the former official warned that although renewable sources are profitable in the long term, they require a high initial investment. Therefore, whoever puts up a power plant associated with a mining company has to guarantee a contract of approximately 20 years.

“Mining eliminates the transport of energy and it can be installed at any point. If this is economically viable afterwards, it is something else ”, said Rodolfo Andragnes, Co-founder and President of Bitcoin Argentina.

“The bitcoin industry as a promoter of new energy locations has a long-term vision; it doesn’t matter what I get today because a high future profitability is expected ”, he said.

What is mining?

In another of the talks of the event, Etienne Marcus Y Francisco Doska they took it upon themselves to meticulously develop the Bitcoin mining process.

“It is not a complicated science but it is an undertaking with a lot of uncertainty. It is very difficult to project a profitable initial investment “Marcus argued.

The experts explained that the miners have an accumulated information package that is added to the public blockchain registry and that their objective is to pass that package through a function of “hasheo” which summarizes the information and “Digests” to obtain a number small enough that is what the network requires, and that is where the difficulty of the process lies.

“To find it you have to make many attempts, with machines that consume a lot of energy. The more the network advances, the more is the energy requirement to obtain these same hashes”, they assured.

A new block is discovered every 10 minutes and the difficulty adjustment occurs approximately every 2 weeks to keep the emission balanced. It should be remembered that every 4 years the amount of Bitcoins is divided in half, which also allows projecting a strength of its value in the long term. According to projections, the series converges to 21 million bitcoins by the year 2,140.

How to buy cryptocurrencies in Argentina?

Averaging the event, four representatives of different platforms that allow trading with cryptocurrencies highlighted the requirements to be able to carry out transactions and what are the strengths of each of them.

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Eduardo García, from Bitso, detailed that their exchange only ask for email, password and full name to have an account. Likewise, you have access to $ 13,500, which can be extended to $ 54,000 per month by adding address and ID. Among its strengths, he highlighted that user funds are 100% insured and that they have high liquidity. “In Argentine pesos, more than $ 47 million were traded against bitcoin and more than $ 20 million against ethereum,” he said.

Members of other platforms preferred to highlight the possibility of operating from person to person, in a more decentralized way, without so many requirements and with a wide variety of choice of payment methods.

What do I buy and where do I keep cryptocurrencies?

In one of the most attractive exhibitions of the day, the influencer Norberto Giudice roughly divided the cryptocurrency market into three segments: Bitcoin, which is the most widely used and the one that became a store of value, Altcoins, which seek faster and more confidential transactions, and tokens that were disseminated to starting from Smart Contracts since the appearance of Ethereum.

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When deciding what to buy, Giudice listed different variables to pay attention to, such as the usefulness of the crypto asset, the history, the technology behind it, the audits carried out, the level of adoption in society, if it has a development community behind. large, etc.

“One cannot be this analysis for 10,000 crypto assets, so I would leave a portfolio of 6/7 assets. I would recommend trying to maintain the dominance in bitcoin that it has in the market (45% approx). I would also suggest leaving only one 20/30% to trade and leave 70% long term “,

In relation to where to keep the assets, the expert said that since 2014 what has worked the best for him is to leave “hardware wallets”, which have no possibility of hacking and where users have “the private key” of the crypto.

History of money

By way of introduction, Pepe Guillen, Director of Coincaex and President of ACUCRIP, reviewed the history of money. In this context, he recalled that with fiat currencies “it is people who are behind the decision-making of the money supply” and that “every time people decide to increase the monetary base, those who lose are the most vulnerable.”

“Now with Bitcoin, it is the first time that decision power has been held by an algorithm with clear and unckable rules”, he asserted.

Looking ahead, he stated that “it is necessary to decentralize the processing power and for each country to have a fraction of the processing power of the blockchain network, since currently the processing power is concentrated in a single country.”

Balance

“Bitcoin represents a potential to support diversification projects of the energy matrix. Mining investment has a medium and long-term perspective. We must stop prejudging and take a serious look at the value generated by the Bitcoin industry,” he said Andragnes in dialogue with Ambit.

“A technology that is highly demanding of a resource pushes that resource. Wanting to charge bitcoin for the energy it consumes is to prejudge its value as a currency, its future potential and the value it generates in the energy industry ”, he stated.




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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