The electricity consumption of Bitcoin and cryptocurrencies, also known as digital gold, has recently become one of the most curious subjects. Since there is a lot of information pollution on this subject, we briefly discussed this issue.
Bitcoin and cryptocurrencies have become arguably one of the most popular economic values in recent years. Being independent of a central authority and traditional financial system, cryptocurrencies attract many people with their speed, ease of use and cost. Bitcoin and many cryptocurrencies are not produced by a central bank, but by miners. Mining is the work of generating new cryptocurrencies by solving complex mathematical problems, confirming blocks and adding them to the blockchain. In theory, anyone can join this network with their personal computer and take their place in the mining race. However, today, in the mining race, it will not be a realistic competition as our competitors are large companies consisting of thousands of very powerful computers and special mining devices.
One of the most important results of this competition is energy consumption. Millions of devices around the world are working non-stop to get ahead in Bitcoin production. In addition to the electrical energy consumed by these devices, an extra energy is spent for cooling the devices.
In fact, one of the reasons that makes mining so difficult is the high energy requirement. This used electricity is mostly spent on cooling systems. For this reason, the world's leading mining companies generally prefer to set up farms in cold climates. For example; Russia, China, Georgia, the United States, Canada, Sweden even the Poles!
Cambridge University in England published the Bitcoin Electricity Consumption Index in 2019. According to these data, the electricity consumption of Bitcoin has increased exponentially over the years and has become almost as much electricity consumption as a small country.
It is very difficult to call Bitcoin environmentally friendly due to the energy consumed and the resulting carbon gas emissions.
You can access the data on Bitcoin electricity consumption published by the University of Cambridge Judge Business School online.
For the high amount of energy consumption needed in Bitcoin production, some companies have started to use fossil fuels. While trying to minimize the carbon footprint, they also provided guidance by raising awareness.
Cambridge University includes data on its website that compares the amount of electricity consumed for Bitcoin with the electricity consumption in the world. For example, the consumption of electrical appliances that are always on even though they are not needed in the USA and Bitcoin comparison, or the electricity and Bitcoin consumed by the kettle used for tea in the UK and Europe.
There is a lot of discussion about Bitcoin's electricity consumption. On the other hand, considering the researches and the measures taken, turning to greener alternatives by using renewable energy proves that we also contribute to the limited supply of nature.