How Much Energy does Bitcoin Actually Consume?
The growth of Bitcoin’s energy consumption has always been a popular topic, however, in the recent years it’s electricity usage has almost equaled small nations like Iceland and Ireland. Many doubt these claims, but how true are they
Bitcoin consumes as much as Ireland
Some media claim often that the level of Bitcoin mining energy consumption has already reached an equal level to that of Ireland. Alex de Vires, a Bitcoin specialist, has estimated the Bitcoin’s consumption to reach 22 TWh, which is almost the same as Ireland’s.
Many people are troubled by the fact that Bitcoin’s energy consumption is constantly on the rise. Still, how can a virtual currency that requires only electrical energy to run, consume that much?
Ireland has relatively high rates for electricity
Ireland’s electricity consumption is one of the most expensive in EU. The average Irish citizen paid around 23 cents per kWh in the second half of 2017, which is higher than the EU average. In Bulgaria, which has some of the lowest electricity consumption rates in EU, it accounted about 10 cents per kWh.
Bitcoin’s electricity usage in 2017 was 22 TWh, while Ireland’s 25TWh. There remains a considerable difference between the two, which can’t be declared as equal. While Bitcoin’s energy consumption needs will be rising, so will be the case for Ireland and other countries.
We might not see an end to the proof of work algorithm in Bitcoin, which plays a core part in cryptocurrency’s requirements, however, over a decade or two, some shifts might happen, which will either strongly question the actuality of Bitcoin, or give it a second chance.