The blockchain technology employed by the cryptocurrencies are mostly based on the Proof of Work ‘POW’ algorithm which is very time consuming and require an efficient regular power supply. EtherDesk tried to calculate the annual electricity consumption of the two major cryptocurrencies namely Bitcoin ‘BTC’ and Ethereum ‘ETH’ which employ the same POW working mechanism and consume enormous electricity and the worst thing still is that this electricity use is doubling every six month. At this pace, the electricity consumption by the two major cryptocurrencies account for nearly 0.426% of the world’s total electricity consumed. As per the stats from a source website, suggest that the total power consumption in the world adds a rise by around 2.6 % which as per the last report until 2017 was 22,000TWh.
Bitcoin -the Major cryptocurrency alone estimated to consume 73.03 TWh of electricity annually, which is equivalent to 1.5% of the total electricity consumed in the United States. The energy consumption in the crypto sector seem to increasing tremendously starting from the year 2008 since after its launch. As per a report published at ‘Digiconomist’s Bitcoin Electricity Consumption,’ till 31st July 2018, the annual Bitcoin’s electricity consumption for this year accounts for nearly 73.03 TWh while the Ethereum’s annual electricity consumption accounts for nearly 20.70 TWh which bring a total of 93.73 TWh of electricity consumption alone by these two major cryptocurrencies globally. Bitcoin and Ethereum energy consumption accounts to nearly 34.33 Percent if compared to the total Pacific Countries that consume an estimated 273 TWh of electricity annually.
The statistics reports from another website report that google consumed 6.51 TWh of electricity back in year 2016 which is approximately 14 times lesser than the power consumed by the Bitcoin and Ethereum alone. Though Google announced that it would reach 100% on renewable energy back in 2017, some of these projects are not yet operational.
Though Google is currently the world’s largest internet giant founded in the year 1998 perhaps if we compare it with the Blockchain Technology which was founded back later in year 2008, Google accounts for only 6.94% of the total blockchain technology in terms of electricity consumption and computational power generation. The Blockchain technology is serving as a backbone for a new type of internet yet to arrive very soon. The Bitcoin network has currently reached a mining capacity so large that it has led us to think of the wonders the network is capable of doing if put in a different use pointing towards endless possibilities.
Forecast For Bitcoin Energy Consumption This Year
The increasing continuous mining operation all over the world for a solid piece of revenue has let the energy consumption of the bitcoin network to grow to by epic proportions since after the price of bitcoin market when it reached at a hike of around $20,000 USD back in year 2017. The entire bitcoin network running endlessly now consumes more energy than a country and this supply of energy seems to be growing everyday. According to a Stat report published by the International Energy Agency, the bitcoin network energy consumption for this year are assumed to be crossing above 125 TWh.
Comparing This Energy Consumption Relative To Other Countries
Apart from the bitcoin energy forecast, to get a clear view of the enomrous bitcoin network energy usage if compared it to different countries this is what we have:
What’s Next For You Now?
The only problem associated with the bitcoin and other cryptocurrencies rather than its electric power consumption is its use in the criminal activities for tax evasion. Several independent regulations are being imposed by countries on their own level with proper monitoring of transactions at the end of crypto exchanges has led these illicit related issues to decrease drastically now.