- Bitcoin is estimated to consume more electricity than the entire country of Switzerland.
- Bitcoin mining hash rate is reaching record levels.
It is common knowledge that the Bitcoin network consumes massive amounts of electricity to process and validate the multitude of transactions. Bitcoin’s popularity coupled with a Proof-of-Work consensus mechanism means Bitcoin’s electricity consumption rivals those of entire countries, according to the Cambridge Bitcoin Electricity Consumption Index
The index puts Bitcoin’s estimated annual electricity consumption at a whopping 64.23 TWh a year, far greater than Switzerland’s 58.46 TWh. However, it is important to keep in mind that Bitcoin’s electricity figure is just an estimate.
Moreover, it is important to note that a significant portion of Bitcoin’s electricity consumption stems from renewable sources like hydroelectric power as it offers miners an attractive electricity price.
Bitcoin miners are responsible for the majority of Bitcoin energy consumption. Bitcoin utilizes a POW consensus mechanism which requires miners to process transactions on the blockchain.
As reported previously by The Crypto Associate, Bitcoin hash-rate is reaching record levels despite ways away from its all-time high of $20,000 in 2017. The rise in hash-rate comes despite the Bitcoin halving event earlier this year which slashed the Bitcoin block reward from 12 Bitcoin to just 6.25 Bitcoin.
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