The world’s biggest cryptocurrency, Bitcoin, is poised to consume 91TWh of energy, as much as Pakistan utilizes in a year, in 2021 with its more expensive and powerful mining machines.
Energy consumption has become the most recent flashpoint for cryptocurrency watchdogs, who decry it as an energy hog. In particular, the noise around the environmental impact of Bitcoin mining has gotten louder with time, and rightly so.
Bitcoin, the biggest cryptocurrency by market cap, utilized about 67TWh of electricity in 2020, and this year, it looks set to gut almost 91TWh of energy which is almost equal to the energy that Pakistan consumes.
Essentially, Bitcoin mining requires a lot of energy. For perspective, Satoshi Nakamoto, the pseudonymous inventor of Bitcoin, compared Bitcoin mining to mining gold. According to research, it takes $12,500 to mine one block of Bitcoin. As the currency surges in value and more miners with less energy-efficient machines join the network, both financial and environmental prices skyrocket.
So, while Bitcoin only makes up 0.3 percent of the global energy consumption, it will require ever-more expensive and powerful mining machines, which most definitely will make Bitcoin consume more energy than Pakistan in the coming years.