Explain the cryptocurrency cost conundrum

benyflyguy

New member
So I was reading an article about how crypto mining farms have since started purchasing their own power plants to mine currency. I get that it takes a fair amount of power to fuel the cpu to do the math to get the crypto.
One of the arguments I read against crypto currency method from a sustainability standpoint was that it cost a lot of money to fuel the transactions. That’s where I get lost??!! Someone explain to me what about the transaction requires so much power. How much are we talking about anyway. they whole thing boggles me.
disclosure: I have no crypto
 
PaulS said:
Transaction fees, part of the game with crypto. You need to use someone like coinbase to transact your crypto.
Just to clarify. Transaction fees on some blockchains, such as Bitcoin, are already a major part of the mining profitability calculation, in addition to the amounts miners receive for mining a block of transactions, which is known as the block reward.

You do not need the participation of an exchange like Coinbase to have transactions mined (or verified). If you want to buy or sell cryptocurrency for other cryptos or government issue currencies, such as USD, then one will often use an exchange. But one can send or use transactions without the participation of an exchange.
 
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