Study shows mining Bitcoin is far less expensive than mining gold

15 Sep, 2018
News
Study shows mining Bitcoin is far less expensive than mining gold

While it has been debated that mining Bitcoin is extremely expensive and power consumption is high, a new study from Long Hash has shown that mining BTC is far less expensive than mining gold. 

Long Hash made use of two rough methods for estimating power consumption for Bitcoin. In the two approaches, they come to a combined average of 4,344 MWh to support the entire blockchain. The price is then estimated using the largest power plant in New York for pricing. They estimate that the total annual cost of electricity is about $4.3 billion.

Long Hash then compare the energy consumption of mining physical gold. Long Hash looked at Barrick Gold Corporation, the World's largest gold mining company. By comparing the amount of gold produced in 2017, and determining the production cost to be $794/oz or $4.2 billion, with 88 million oz. of gold produced yearly, it would cost roughly $70 billion per year to mine the World's gold production, according to Long Hash.

Long Hash compares the energy costs of worldwide oil consumption to mine BTC and gold as 0.07% VS 0.27% respectively.

In summary, it is clearly evident that out of the two stores of value, Bitcoin is far cheaper to mine compared to gold.

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Read more about: Bitcoin (BTC)

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