Over the last few weeks, there has been an ongoing debate about how much energy is Bitcoin consuming for mining and for other cryptocurrencies
As a result, various articles exaggerating the consumption of Bitcoin and other published cryptocurrencies
Therefore, it is the need of the hour to analyze the consumption of energy due to bitcoins.
While it is true we consume a lot of electricity for mining cryptocurrencies
The truth is that the consumption of energy for mining Bitcoin and other cryptocurrencies globally amounts to about 0.1% of total global electricity consumption
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That means, even if we turn of all the miners at this moment
There would be no impact on the global electric power supply
That's why I am going to discuss How much energy is Bitcoin consuming?
Is Bitcoin Mining Power Consumption High?
Bitcoin mining will consume approximately 0.5% of the world's electricity by the end of 2018, or 98 TWh (terawatt hours)
If we compare this number to other data, it would seem massive
However, it is only 0.2% of total electricity production in the world which amounts to 19,150 TWh, according to this data
It is also essential to know that the 0.5% number above represents Bitcoin consuming energy, not spending or costs
Nevertheless, it may seem more significant because many countries already produce more than 100% of their electric power needs
Bitcoin Mining's Energy Cost Is Huge, But It's Not As Bad As You Think
One of the most important questions about Bitcoin is how much energy it is consuming?
This question has often led to a heated debate that began sometime last year
In contrast, others have started to report that Bitcoin uses less energy than the cryptocurrency market as a whole
The truth is that it all depends on your living place and what your electricity costs are
If we take the example of Ireland and compare it with other European countries such as Germany, then the consumption difference can be as high as 7.6x
7 Ways How Bitcoin Affect Electricity industry
While the cost of mining one Bitcoin varies from region to region
It is an undeniable fact that the rising interest in cryptocurrencies has triggered an enormous electricity demand
This means that this development affects both sides by
Energy producers and mining companies
Because of higher power consumption, more power plants have to be built or upgraded
The latter requires a lot of money and time
Which means that the process is slow and very expensive
Of course, cryptocurrency and bitcoin mining takes enormous amounts of consuming energy on an international scale
This has triggered environmental concerns especially in China
Where many power plants have to be shut down because of the pollution they cause
According to some experts, the global Bitcoin mining activity already consumes more electricity than 159 countries!
New technologies have also taken a massive hit because crypto miners constantly ask for more processing power
Wealth may be made anywhere there is a need
Unfortunately, this has led to many scams and shady deals in the mining industry
5. Regularly and frequently updated
The Bitcoin Electric Usage Index gives you the most up-to-date assessment of the Bitcoin network's overall consuming energy usage
All calculations are based on the correct value of the Bitcoin difficulty and the market price of electricity in each country
6. Identities are hidden
One of the key factors contributing to the growth of bitcoins is confidentiality
Users have complete authority over their operations as a result of this
But on the other hand, this could be a problem for tax authorities who cannot identify potentially taxable income or gains
Just because the identities of bitcoin trading owners are hidden
Conclusion on Bitcoin consuming energy
To recap on how much energy is Bitcoin consuming?
As you probably already know, mining is not free
It takes a lot of time, effort, and money to acquire the equipment, manage it, and keep running
This means that electricity costs are always higher than just the price of mining one coin since no miner can get their machines for free!
Despite this fact, people still believe that Bitcoin mining consumes more energy than 159 countries worldwide
While it is undeniable that Bitcoin mining consumes a lot of electricity, it is still lower than many other activities