How Much Energy Is Bitcoin Consuming?

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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how much energy is Bitcoin consuming

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

1. Economically

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

2. Environmentally

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!

3. Technologically

New technologies have also taken a massive hit because crypto miners constantly ask for more processing power

4. Politically

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