Before diving in, it’s worth briefly explaining the basics of
bitcoin mining, and why it requires so much energy.
When someone mines for bitcoin, what they’re really doing is adding and verifying a new transaction record to the
blockchain—the decentralized bank ledger where bitcoin is traded and distributed.
To create this new record, crypto miners need to crack a complex equation that’s been generated by the blockchain system.
Potentially tens of thousands of miners are racing to crack the same code at any given time. Only the first person to solve the equation gets rewarded (unless you’re part of a
mining pool, which is essentially a group of miners who agree to combine efforts to increase their chances of solving the equation).
The faster your computing power is, the better your chances are of winning, so solving the equation first requires powerful equipment that takes up
a lot of energy.