Global energy consumption from Bitcoin mining is just over 0.10%
A main argument against Bitcoin is the amount of energy used to mine new blocks. Regulators have gone to great lengths to curb the blockchain’s energy consumption and reduce its environmental impact. However, the latest findings show that the energy use of Bitcoin mining only accounts for a small part of the world’s energy production.
The Bitcoin Mining Council (BMC) estimates the cryptocurrency’s energy consumption to be only 0.16% of the world’s total production. The organization, which represents 51 of the world’s largest mining companies, released this figure in its Q3 report.
However, the report also indicates an increase in the cryptocurrency’s energy consumption from year to year.
More on BMC’s Q3 report
The Bitcoin Mining Council (BMC) published its analysis and research on the energy used by Bitcoin miners on October 18. These miners enable the Bitcoin network to process transactions despite its extremely decentralized structure.
BMC’s founder, Michael Saylor, explained in a video that Bitcoin’s power consumption is extremely small compared to the world’s power consumption. He stated that the amount of electricity used for mining is only 0.16% of the total amount used worldwide.
According to the research, Bitcoin’s network uses 266 TWh annually, while the global electricity consumption is 165,317 TWh. Saylor noted an interesting fact: a third of the blockchain’s entire power consumption is waste that cannot be used. This means that the amount of electricity used by the Bitcoin network has little effect on global warming. Saylor, Microstrategy’s former CEO, also said that the Bitcoin network currently runs on a 59.4% renewable energy mix. This makes it a frontrunner in the PoW blockchain industry.
BTC emissions near zero despite pressure from environmentalists
The BMC also determined that bitcoin mining contributed only 0.1% (or “negligible”) to global carbon emissions. Bitcoin miners have long come under fire from environmental activists who say their excessive energy use is harming the environment.
Greenpeace, a notable independent global campaign network, has run a campaign under the slogan “change the code, not the climate”. The goal is to get the Bitcoin network to switch to the proof-of-stake method, which is better for the environment. However, the official account has attracted just under 1,100 followers as of this writing.
BTC registers high consumption from year to year
Despite using less energy than other industries, the report also stated that BTC’s year-on-year (YoY) consumption increased by 41%. It is also worth noting that the cryptocurrency’s mining efficiency increased by 23% in Q3 2022 compared to the same quarter of the previous year.
The consumption increase is attributed to BTC’s hashrate’s 8.3% and 73% increase in the third quarter and year-over-year, respectively. This increase comes despite BTC’s falling price and fewer blocks being mined. At the time of writing, Bitcoin was trading in the red zone, down 0.45% in the last 24 hours.
This increased consumption has renewed concerns among cryptocurrency miners that the government may soon step in and crack down on the industry. In March, the EU shot down a proposal that would have banned cryptocurrency mining. However, stricter rules may yet be on the horizon.
Featured image from Pixabay and chart from TradingView.com
