📄Background & Market Analysis

High Energy Costs and Environmental Impact

As blockchain technology continues to penetrate the global financial and technological landscape, energy consumption and environmental damage challenges have become more pressing.

Cryptocurrency mining, especially Bitcoin, is notorious for its extreme energy consumption, but at the same time, its demand has only increased, with rising prices eroding profitability and making it increasingly difficult for small-scale miners to compete with industrial-scale miners, who have sufficient resources to absorb these high costs

Bitcoin's mining operations require huge amounts of computing power, which means a lot of electricity. It is estimated that Bitcoin alone consumes more energy annually than in some countries, adding significantly to global carbon emissions. The growing demand for Bitcoin exacerbates the environmental impact and pushes up the operating costs for miners.

Additionally, international agreements such as the Paris Climate Agreement have prompted governments to create policies that encourage the use of renewable energy and penalize excessive carbon emissions. As the world commits to ambitious environmental targets, the need for a more sustainable and economically viable mining solution is clear.