- The Bitcoin network is estimated to consume over 55 TWh per annum, more than the entire country of Israel.
- Renewable energy sources can easily power the entire Bitcoin network many times over.
Many Bitcoin critics argue that Bitcoin’s massive electricity consumption is not sustainable. While there isn’t a clear answer on just how much electricity the Bitcoin network assumes, the Cambridge Bitcoin Electricity Consumption Index, estimates this figure to be just over 55 TWh per annum.
To put this in context, the CBECI estimates the Bitcoin network to consume more electricity than the entire country of Israel. Despite the enormity of this figure, it is also important to quantify Bitcoin’s electricity consumption in regards to renewable energy as many large miners solely utilize hydroelectric power to achieve the lowest electricity prices. According to the CBECI, hydropower alone can provide enough electricity for the Bitcoin network 75 times over.
While renewable energy can easily power the Bitcoin network, many concerns lie in sustainability. With Bitcoin rising in price, new miners or existing miners will likely purchase additional cryptocurrency miners which will further increase the overall electricity consumption.
Bitcoin mining difficulty has seen numerous all-time highs this year, as previously reported by The Crypto Associate. Bitcoin mining difficulty represents the number of miners on the Bitcoin blockchain. A higher difficulty is representative of a higher overall Bitcoin network hash rate which signifies higher electricity consumption.
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