Bitcoin mining to exceed power consumption levels in the year 2021

Bitcoin mining to exceed power consumption levels in the year 2021

A recent report has revealed that the Bitcoin industry is using an increasing amount of energy to mine Bitcoins, with its total power consumption to have already exceeded 2020 levels.

Last year, electricity consumption for Bitcoin mining was recorded to be over 67 terawatt-hours (TWh). However, the report states that this year's power consumption has already crossed that threshold, and by the end of 2021, mining is expected to have consumed 91 TWh of energy, which is almost equal to the overall power consumed by Pakistan.

In addition, as the price of bitcoin rises, more bitcoin miners will join the network, using less energy-efficient devices to mine bitcoin, and thereby increasing energy consumption.

As per the University of Cambridge's CBECI (Cambridge Bitcoin Electricity Consumption Index), bitcoin power consumption is strongly tied to the financial costs of its mining operations and its projected price trend.

In its FAQs on power consumption, CBECI claimed that if bitcoin values rise and electricity costs fall, less efficient hardware will be reinstalled, resulting in increased electricity consumption.

Since bitcoin mining consumes a lot of electricity, it's becoming more vital to migrating to low-carbon energy sources.

Earlier this year, Elon Musk, CEO of Tesla, had announced that Tesla would no longer accept Bitcoin as payment for its electric vehicles due to concerns about the virtual currency's environmental impact.

However, a credible source quoted Musk saying that Tesla would resume accepting bitcoin if the amount of renewable energy usage is most likely at or over 50%, and that there is a tendency toward increasing that number.

According to CBECI, China had a 46% monthly average share of global bitcoin mining hashrate, followed by 16.8% for the United States, 8.2% for Kazakhstan, 6.8% for Russia, 5% for Iran, 3.4% for Malaysia, 3% for Canada, 2.81% for Germany, 2.27% for Ireland, and 5.92% for others as of April 2021.

Source Credit - https://www.financialexpress.com/market/bitcoin-to-use-electricity-as-much-as-entire-pakistan-for-crypto-mining-in-2021/2329559/