How much energy does Bitcoin use ?
All Currencies have a cost. Banks and Gold require electricity & Fossil fuel. Bartering has the hassle of converting cows to fractions of Houses plus remembering who owes what to who and maybe having to forcefully remind them when they conveniently forget.
As an environmentalist bitcoins energy consumption is an issue close to my heart. I've found it uses way less energy than Gold mining ! and Banks but more importantly WAY less Green House Gasses.
As an environmentalist bitcoins energy consumption is an issue close to my heart. I've found it uses way less energy than Gold mining ! and Banks but more importantly WAY less Green House Gasses.
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Live energy consumption >
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Ths x W/Ths = GW
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You may see higher estimates that lump in the whole of "CRYPTO" but these are scams not Bitcoin.
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As you can see above - Bitcoins energy consumption and GHG's barely registers against what it's replacing !
Bitcoins power consumption serves three purposes
- Minting new coins 96%
- Performing transactions 4%
- Blockchain nodes almost 0%
Unexpected Benefits
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Expected Benefits
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10 REASONS BITCOIN IS GREEN
- Bitcoin is mostly powered by renewables.
- Bitcoin does not invest. Banks have invested huge amounts in Oil & Gas.
- Bitcoin (Money that increases in value) encourages people to save not consume.
- Printed money tends to go to pay for big ticket items such as The Military, Nuclear Power stations, Coal fired Power stations.
- Bitcoin Incentivises renewables. Previously, excess renewable capacity was switched off, now it can be sold to Bitcoin mining.
- Second use of heat from Bitcoin mining can be used for space heating.
- Previously vented Methane can power Bitcoin mining, converting it to CO₂ a much less potent green house gas.
- Low/Negative interest rates in paper money encourage spending beyond peoples means, which in turn push up property prices beyond the savers ability to pay. Increased property prices encourage more borrowing against property thats risen in value feeding the loop.
- The initial mining "gold rush" is over. Mining is not as profitable as simply holding.
- When all coins are minted by 2100 mining should decrease significantly.
Second use of the heat
Heat is a by product of Bitcoin mining. The heat from 1 modern ASIC is typically 1.4 - 3.3kW & can be used to heat homes & businesses. Use Green electricity and you have a Zero emissions heater that makes MONEY ! Electricity is converted too heat, it doesn't care if its £50 heater or £3500 ASIC the result is the same. Currently Bitcoin consumption is capable and in many cases is - heating up to 2Million homes.
Bitcoin incentivises Green energy !
Giving a very useful outlet for excess wind, solar (see Sunexchange) and hydro power. In the UK and Germany people are actually PAID TO CONSUME excess wind power, imagine getting paid twice to use power!
In the UK Octopus Energy Agile tariff can go to -3p /kWh.
The mining equipment does not need to run 24/7 and can be quite happily turned off when little renewable energy is available. Load switching/ balancing is hugely advantageous to renewables.
In the UK Octopus Energy Agile tariff can go to -3p /kWh.
The mining equipment does not need to run 24/7 and can be quite happily turned off when little renewable energy is available. Load switching/ balancing is hugely advantageous to renewables.
Bitcoin vs Gold
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The Gold industry produces 126MT CO₂ Annually
Gold mining =
In 2013 it took 25.8 gallons of Diesel to produce 1 ounce of gold ! Bitcoin tends to use the cheapest electricity which is usually the greenest EG excess power from
It's the emissions produced in making the energy and destruction of enviroment that is important ! |
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Bitcoin vs the Dollar & Banks
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The Dollar is said to be "Backed by men with Guns" . The Military is one of the biggest polluters.
Bitcoin currently has only 13% of the Banks emissions and thats before you factor in the financing of virtually all the oil exploration ! More here from Fossilbanks. https://www.fossilbanks.org These 38 Fossil Banks are among the biggest financiers of the fossil fuel industry. A handful have adopted policies excluding or restricting financing for some parts of the industry, but none have yet committed to stop funding fossil fuels altogether. |
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Stranded Energy
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In the Oil and Gas industry, previously “stranded” energy in the form of Methane has been flared or worse, vented. Methane is 86 x more potent Greenhouse Gas than CO₂. Now the gas is being increasingly used for bitcoin mining. Burning the gas efficiently to produce electricity is a net climate positive as long as its using abandoned flares and Vents. Although Bitcoin critics may say “Bitcoin is powered by fossil fuels so its bad”, this has huge potential for CO₂e Reduction of the Oil & Gas industry !
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Buying vs Mining
As the price rises will Bitcoins energy consumption rise ?
I think we may actually be at peak mining energy consumption for the following reasons. Typically Bitcoins value increases 200% every year ! Compound interest rates on steroids ! Instead of investing in mining equipment, wages, electricity over the next few years, with a rapidly rising price it may simply be much better investment to plough the money in and buy BTC IMMEDIATELY , (see orange row) for massive future gain. Especially if you have invest in research & development.
In the early days the mining reward was much greater ( 50BTC ) so was worth the investment, but now if you are a company like Bitmain looking to invest in Research & Development to bring the next generation of ASIC to market, would you employ staff, buy machinery costing $millions or simply buy & hold and go on holiday and make FAR MORE money?
I do not see a huge increase in mining energy consumption and quite possibly a reduction. ASIC mining gear is fetching highly inflated prices at the moment. Some people may people actually sell there gear to invest in the coin its self. Hash rate may increase as old slow ASICs are replaced for new ones. Major innovations from Bitmain or anyone else seem a long way off at the moment.
In the early days the mining reward was much greater ( 50BTC ) so was worth the investment, but now if you are a company like Bitmain looking to invest in Research & Development to bring the next generation of ASIC to market, would you employ staff, buy machinery costing $millions or simply buy & hold and go on holiday and make FAR MORE money?
I do not see a huge increase in mining energy consumption and quite possibly a reduction. ASIC mining gear is fetching highly inflated prices at the moment. Some people may people actually sell there gear to invest in the coin its self. Hash rate may increase as old slow ASICs are replaced for new ones. Major innovations from Bitmain or anyone else seem a long way off at the moment.
Bitcoins Green Credentials Conclusion
If you really want to be green shut down -
Bitcoin could do that without a shot being fired, how green is that ?!
- Gold mining
- Banks !
- Military Industrial Complex
Bitcoin could do that without a shot being fired, how green is that ?!
