A recent BanklessTimes data presentation shows that BTC accounts for as high as 77% of the electricity consumed on cryptos.
“This is an alarming statistic and one that should cause concern for all those involved in the crypto world,” says BanklesTimes CEO Jonathan Merry. He adds, “Not only is Bitcoin’s electricity consumption putting a strain on resources, but it’s also emitting worrying levels of Green House Gases. There’s a need for urgent interventions to change this trend.”
By mid-August 2022, estimates put the U.S’ share of global BTC electricity usage at between 33 and 55 billion kWh per year, which is comparable to the consumption of some nations, states, or critical energy services.
This could have serious environmental consequences. The American Crypto industry currently emits between 25 and 50 million metric tons of CO2 annually, of which the BTC network accounts for the most emissions.
Why is Bitcoin Such an Energy Guzzler?
Bitcoin’s high electricity consumption can be attributed to its proof-of-work algorithm and the block size limit. The two require a lot of energy to verify transactions.
Recently, there have been calls for new forms of mining that don’t require such a large amount of electricity. There are also plans to abandon proof-of-work mining altogether and move towards more sustainable models like proof-of-stake mining.
Bitcoin’s Link To America’s Climate Conservation Moves
As climate change continues to be a pressing global issue, it is important to discuss its potential risks and consequences. One major consequence of climate change is its financial impact. In 2021, climate disasters set back the U.S $145 billion.
This number is only expected to rise in the coming years as climate change becomes more severe. Consequently, the U.S. must focus its crypto-asset policy on several key areas to meet its climate conservation objectives.
First, the policy should aim to reduce GHG emissions from crypto-asset operations. Second, it should avoid processes that will increase the cost of electricity to consumers or reduce the reliability of electric grids.
Thirdly, the policy should aim to support a clean energy transition that equitably benefits communities across the country. Likewise, it should target reducing electronic waste and pollution and resolve data gaps to manage electricity demand better. Full story and statistics can be found here: Bitcoin Accounts for as High as 77% Of the Total Electricity Consumed by Cryptocurrencies