The average energy consumption for one single Bitcoin transaction in 2023 could equal several hundreds of thousands of VISA card transactions. This according to a source that tries to estimate the energy consumption of both Bitcoin (BTC) over time. It does so by estimating how much income miners possibly spend on electricity, as there is no institution that tracks how much energy the cryptocurrency actually consumes. This also applies to which countries mine the most Bitcoin, as this is estimated by cross referencing IP addresses.
A matter of design: why Bitcoin consumes so much energy
Of all the 21 million Bitcoins that can exist at the same time, nearly 90 percent was already mined in mid-2021. This, however, does not necessarily mean that the Bitcoin supply is running out as the last Bitcoin was forecast to be mined around the year 2140. This is a design choice in the cryptocurrency: The closer Bitcoin gets to its supply limits, the computing power – and therefore energy - needed to mine goes up incrementally. The BTC mining difficulty or amount of computing power being applied to mine Bitcoin reflects that: Bitcoin mining in, say, 2014 – when there were less Bitcoin in circulation - was easier and less energy consuming than in 2021. By then, there were significantly more coins in circulation and the cryptocurrency’s design essentially tries to halt the creation of more.
China’s doubts on whether Bitcoin is green
Over the course of 2021, the price of Bitcoin was over 60,000 U.S. dollars but by the summer only half of that amount remained. This was partially caused by China’s Financial Stability and Development Committee trying to curb domestic crypto mining since May 2021 – which led some to doubt whether there was a future for the cryptocurrency. China’s efforts are said to have been triggered due to remote mining farms demanding so much electricity that idle coal mines were restarted without government approval. Whilst this was never confirmed, China is generally seen as the most coal consuming country in the world.
FAQs
It has been concluded that the ultimate energy consumption of the Bitcoin network, which will happen around 2025, is in the range of 40.4 to 73.41 TWh annually and its estimated value is 58.56 TWh.
How much energy is Bitcoin consuming? ›
The average energy consumed for one Bitcoin transaction is 851.77 kWh, equivalent to about a month of electricity for the average US household.
How to solve Bitcoin energy problem? ›
Merged mining solves Bitcoin's energy problem by ensuring that computational power is reused to incentivize miners and underpin another network. The auxiliary network is effectively carbon neutral, as miners do not expend additional energy resources.
How much energy does Bitcoin use compared to a country? ›
Globally, the mining of bitcoin currently consumes more than 129 terawatt-hours of electricity per year – as much as Finland's electricity consumption and a good 30 percent more than Switzerland's.
How many kWh to mine 1 Bitcoin? ›
The New York Times recently equated the total power consumed by Bitcoin annually to what's used by Finland in one year. The fact is that even the most efficient Bitcoin mining operation takes roughly 155,000 kWh to mine one Bitcoin. By way of comparison, the average US household consumes about 900 kWh per month.
Does Bitcoin use more energy than ethereum? ›
What's the Difference Between Proof-Of-Work and Proof-Of-Stake Consensus Mechanisms in Cryptocurrencies? Some of the largest cryptocurrencies, like Litecoin, Dogecoin, and Ethereum, use a lot less energy for mining than the Bitcoin network.
Is bitcoin mining a waste of energy? ›
The environmental impact of bitcoin is significant. Bitcoin mining, the process by which bitcoins are created and transactions are finalized, is energy-consuming and results in carbon emissions, as about half of the electricity used is generated through fossil fuels.
How many bitcoins are left to mine? ›
According to the Bitcoin protocol, the maximum number of bitcoins that can be created is 21 million. As of March 2023, approximately 18.9 million bitcoins have been mined, meaning there are around 2.1 million bitcoins left to be mined.
How long does it take to mine 1 Bitcoin? ›
The length of time it takes to mine 1 Bitcoin can vary. Each committed Bitcoin block releases 3.125 Bitcoin. To answer the central question in mind, it takes an average of 10 minutes to mine not just 1 Bitcoin but 3 — and that rate will fluctuate over time.
Can Bitcoin become energy efficient? ›
Bitcoin could potentially switch to such an consensus algorithm, which would significantly improve environmental sustainability. It is estimated that a switch to proof-of-stake could save at least 99.85% of the energy currently required to run a proof-of-work based system.
The computational effort needed to support profitable cryptocurrency mining consumes large amounts of electricity to operate the machines as well as to cool equipment to prevent overheating.
What problem Bitcoin solves? ›
Bitcoin's blockchain ensures transaction traceability, deterring illicit activities, while its fixed supply of 21 million BTC offers a potential hedge against inflation and currency debasem*nt.
Which country is currently the biggest Bitcoin miner in the world? ›
Most Bitcoin mining occurred in the United States, according to IP addresses from so-called hashers that used certain Bitcoin mining pools in 2021.
How much does it cost to mine 1 Bitcoin? ›
Mining a Bitcoin depends on your energy rate per Kwh, it costs $11,000K to mine a Bitcoin at 10 cents per Kwh and $5,170K to mine a Bitcoin at 4.7 cents per Kwh. Learn how and if mining right for you in July 2024!
Why do Bitcoin transactions use so much energy? ›
Bitcoin is the only major currency that uses proof-of-work mining. The large energy usage associated with proof-of-work mining is an inevitable consequence of the fundamental nature of its algorithms.
What is the carbon footprint of Bitcoin? ›
A 2022 non-peer-reviewed commentary published in Joule estimated that bitcoin mining resulted in annual carbon emission of 65 Mt CO 2, representing 0.2% of global emissions, which is comparable to the level of emissions of Greece.
How much power does a bitcoin mining machine consume? ›
What's the best Bitcoin mining hardware in 2024?
| Mining Hardware | Hashrate | Power Consumption (Watts) |
|---|
| Bitmain Antminer S19 XP Hyd (255Th) | 255TH/s | 5304 |
| Canaan Avalon Made A1366 | 130TH/s | 3250 |
| MicroBT Whatsminer M50S | 126TH/s | 3276 |
| MicroBT WhatsMiner M56S | 212TH/s | 5500 |
1 more rowMining profitability can change very quickly.
A ETH mining difficulty of 1.00, a ETH mining hashrate of 6,000.00 MH/s consuming 4,500 watts of power at $0.10 per kWh, and a block reward of 2.00 ETH at $2,272.16 (ETH to USD).
How much energy does ChatGPT use? ›
A single ChatGPT query is said to utilise 2.9 watt-hours, nearly 10 times more than a Google search (0.3 watt-hours). With AI's computational needs rising every 100 days, the energy required for AI tasks is growing exponentially at rates between 26-36%.
