Bitcoin’s Power Drain: How Much Energy is it Really Using?
According to fresh research from ESCP Business School, Bitcoin is responsible for a whopping 0.5 % of global electricity consumption—that’s about the same amount of power as the entire nation of Pakistan!
The Dark Side of “Mining”
Mining, the process of creating new Bitcoins, is an environmental villain. The heavy reliance on outdated Power‑of‑Work (PoW) protocols means miners are basically turning up the heat on our planet every time they crack a block.
Good News on the Horizon
Ethereum, the second‑biggest cryptocurrency, is ditching PoW in favor of Proof‑of‑Stake (PoS), slashing energy usage by a staggering 99 %. That’s a clear sign that a greener crypto future is on the table.
Renewable Energy to the Rescue
- China’s mining ban is reshuffling the industry, moving coal‑driven farms to places rich in renewables like North America and Iceland.
- Renewable energy prices have dropped dramatically—solar, wind, and hydro are now cheaper than ever, opening huge markets for eco‑friendly mining.
- Pivoting to green power could turn Bitcoin into a catalyst for the global energy transition.
What the Numbers Say
The University of Cambridge’s Bitcoin Electricity Consumption Index (BECI) estimates Bitcoin uses roughly 131.5 TWh of electricity per year, or about 0.55 % of worldwide electricity consumption. That’s a bit more than the annual power use of Pakistan, the Netherlands, and Sweden combined.
Why It Matters
By embracing renewable energy, mining could lead the pack in a greener, more sustainable future. Imagine a world where digital gold is powered by sun and wind—now that feels pretty cool!
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