New analysis has shown that Bitcoin has consumed more energy than it used during the entire year. This is despite concerns about its energy consumption.
Bitcoin’s Rising Power Consumption
Bloomberg reported that the network consumed 67TWh (or a lot) of electricity in 2020. Its total consumption in 2021 has already exceeded this figure. Analysts predict that Bitcoin will use 91 trillion watts of electricity by the end of 2019, surpassing Pakistan’s consumption. Additional data predicts a higher number of 95 TWh.
However, this number is subject to fluctuations. This was evident in events like the crackdown on Bitcoin mining in China earlier in the year. The hash power taken from the Bitcoin network by these events, which were as high as 141TWh at May and as low as 68TWh at June, respectively.
As Bitcoin’s prices rise, so does the need for more power. Mining, the most energy-intensive part of the Bitcoin network, is often rewarded with the most bitcoins. Mining, as the report points out is more profitable with Bitcoin’s increasing value, drawing more energy into the network, even though it’s not that efficient.
Bitcoin Energy Use: Is it a dying issue?
Many people mistakenly believe that increased power consumption equals environmental harm. This is not true for Bitcoin.
According to data from July, Bitcoin’s carbon footprint appears to have declined substantially since Elon Musk raised concerns in May. This is due in large part to the maximum exodus from China, a country that relies on coal mining, to areas with cheaper renewable energy options like Texas.
The “B-Word” conference in July revealed some interesting insights that Bitcoin mining is a renewable activity. The figures suggest that the network is responsible for between 34-46% of the world’s sustainable energy consumption, but only 0.1% global CO2 emissions.
Elon Musk also admitted that Bitcoin mining was moving in the right direction to renewable sources at that time and that he would continue to accept Bitcoin for Tesla purchase orders.
Marla Brooks – Financial Analysis
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