Bitcoin’s electricity consumption is eight times that of Google and Facebook combined

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The electricity consumed each year to mine Bitcoin is now eight times greater than that used by tech companies Google and Facebook combined, and even greater than that used in Norway and Switzerland, raising concerns about the impact environmental impact of digital currency.

The world’s first and largest cryptocurrency consumes 143 terawatt hours of electricity per year, more than many mid-sized European countries use, according to data provider TradingPlatforms. As a perspective, global data centers consume 205 TWh per year; Bitcoin alone consumes 70% of that figure.

Google, owned by Alphabet, the world’s largest search engine, uses 12 TWh, or about a twelfth of Bitcoin’s energy consumption. Meta Plaftorms’ Facebook, the largest social network in the world, pales even more in comparison, requiring only 5 TWh for its functions, or 3.5% of what the cryptocurrency needs.

Norway and Switzerland only need 124 TWh and 56 TWh, respectively.

The statistics “paint a grim picture for Earth,” said Edith Reads, author at TradingPlatforms.

“The amount of energy consumed by Bitcoin is worrying. Its transactions consume more than what some entire countries are doing now. And that number is doomed to increase due to the increasing difficulty of mining the asset that requires more execution power, ”she added.

The environmental impact of Bitcoin and the cryptocurrency market as a whole has been the subject of a lot of scrutiny.

Bitcoin is the most energy-intensive cryptocurrency, with a single transaction requiring an average of 1,173 kilowatt hours, according to a study by data provider Money Supermarket. Considering that the average monthly electricity consumption of a UK household is 350 kWh, that’s enough to power a typical UK home for more than three months, he said.

For comparison, this would equate to about six weeks of electricity based on an average US household electricity consumption of 877 kWh per month.

Meanwhile, Ethereum, the world’s second largest cryptocurrency, only needs 87.29 kWh per transaction, barely 7.4% of what Bitcoin needs. Bitcoin Cash and Litecoin are next on the list, requiring only around 19 kWh, while the rest of the field doesn’t even hit 1 kWh, Money Supermarket said.

In April, researchers at the University of Cambridge reported that Bitcoin’s total annual energy consumption exceeded that of the United Arab Emirates, reaching 120 TWh per year compared to 119.45 TWh for the United Arab Emirates.

In the same month, Bloomberg reported that the Nordic region was losing its edge in green mining of Bitcoin at a time when the cryptocurrency industry was increasingly watched for its carbon emissions and as the investor appetite was increasing.

And when China, the world’s largest consumer of electricity, shut down Bitcoin mining operations in Sichuan in June to address environmental concerns, the cryptocurrency first fell below $ 30,000. times since January.

Ms Reads said Bitcoin’s negative reputation stems mainly from its technology, which uses a proof-of-work consensus mechanism to validate transactions, a process that is energy and material-intensive, releasing a lot of waste into the environment.

“In addition, a significant portion of its mining activity uses non-renewable energy resources. These resources are affordable and therefore attractive to many miners. They, including coal, leave a huge carbon footprint on the environment, ”she said.

The power consumption of a computer varies depending on the type used, according to EnerGuide, based in Brussels. An average desktop computer uses 200 watt hours when in use, including speakers and printer. If it is turned on for eight hours a day, it consumes almost 600 kWh and emits 175 kilograms of carbon dioxide per year.

A laptop, on the other hand, uses between 50 watt hours and 100 watt hours when turned on. If it is turned on for eight hours a day, it consumes between 150 kWh and 300 kWh and emits between 44 kg and 88 kg of carbon dioxide per year. The power consumption of a desktop computer and a laptop decreases by about a third when they are in sleep mode.

Meanwhile, non-fungible tokens – cryptocurrency assets that use the blockchain to record the ownership status of digital objects, each with only one certified owner – are also adding to crypto’s carbon footprint. currencies, because each step of the NFT cycle requires energy. Money Supermarket estimates that the average NFT uses 340 kWh and has a carbon footprint of 241 kg.

Yet the latest craze in the cryptocurrency market uses much less power than some of its cryptocurrency counterparts – but at 0.3 TWh, it still uses more electricity than 28 countries, just behind Antigua. -and Barbuda, he said.

The Bitcoin community has not accepted the criticism, with its supporters pointing out that other mundane activities such as the traditional financial system leave a larger footprint than digital assets, Ms Reads said.

The amount of energy consumed by Bitcoin is of concern. Its transactions use more than what some entire countries are doing right now

Edith Reads, author at Trading Platforms

Some of the world’s largest banks – including Morgan Stanley, JPMorgan Chase, Bank of America, Morgan Stanley, Citigroup, Goldman Sachs and Wells Fargo – have pledged to reduce their carbon footprints under pressure from environmentalists and regulators.

The cryptocurrency industry is also pursuing cleaner and greener mining, part of this shift involving the adoption of renewable energies in transaction validation. These include solar, wind and geothermal energy.

The world is expected to emit 36.4 gigatonnes of carbon dioxide in 2021, close to levels seen in 2019, according to a recent report by the Global Carbon Project research group. Carbon emissions were one of the main sticking points at the recent Cop26 summit in Glasgow, where world leaders fought over the challenge.

Bitcoin’s price on Thursday morning was $ 46,412.75, down nearly 3% in the past 24 hours, according to data from CoinMarketCap. The overall market capitalization of the cryptocurrency industry was over $ 2.17 trillion.

Update: December 30, 2021, 4:45 a.m.

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