Bitcoin, Crypto currency, Blockchain

Bitcoin Mining 20 Times cheaper than the promotion of the precious metal Gold

Bitcoin Mining 20 Times cheaper than the promotion of the precious metal Gold

Home News Bitcoin Mining 20 Times cheaper than the promotion of the precious metal Gold

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Matthias Nemack –
15.09.2018

That the crypto Mining is associated with high energy consumption, is out of the question. Therefore, many companies in the industry are looking for Ways to reduce costs and environmental impact. A analysis now points much higher costs for the mining of Gold, will surprise some opponents of the crypto sector.

Enormous production costs in the Gold

Critics have currencies problems with the success of Crypto, highlight often the high cost of Bitcoin Mining and the Mining of other Coins. It is now clear: the Gold caused costs 20 times as much funding. Background: the value of The crypto-market is according to recent messages to 200 billion US Dollar, the gold market will help to make it a market capitalisation of about eight trillion dollars. This significant difference, it is sometimes argued that when it comes to the justification of the high costs of extraction of Gold. A year of gold is causing the degradation according to the specialized portal LongHash costs in the amount of more than 87 billion dollars, while the Mining of Bitcoins fails with just under 4.3 billion USD to beech.

Experts consider in the light of these cost and Market capitalization, transfer costs and operating costs for mines when Gold is involved. But it was only with the inclusion of these additional costs could be Bitcoin and gold mining correctly compare the. Furthermore, the costs for the exchanges, banks and OTC trading places, the Gold is traded would have to be included in the calculations.

Crypto market uses more and more renewable energy

It is true that Krypomining is done in some countries, such as Chile or Canada, increasing the use of renewable energy, so that the load on the environment will prove to be much lower than in the early days of the industry. In gold mining, however, such developments in practice are only possible to a limited extent.

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