Bitcoin’s energy consumption is 66 times higher than in 2015

Tram Ho

As Bitcoin has been at its peak recently, public opinion has also been concerned with the energy consumption of mining operations. This is not only a public concern, but Bitcoin investors themselves are having a headache about this issue. That is also the content that many cryptocurrency operators in Vietnam pay special attention to.

Mức tiêu thụ năng lượng của Bitcoin cao gấp 66 lần so với năm 2015 - Ảnh 1.

According to a Citigroup report, Bitcoin’s electricity consumption is now 66 times higher than it was in 2015. At the same time, Citigroup further stated that the carbon footprint associated with cryptocurrency mining could will be faced with more and more scrutiny.

The report cites data from the University of Cambridge’s Center for Alternative Finance. As of mid-April 2021, the global electricity demand generated by Bitcoin could reach 143 MWh per year, about 4% higher than Argentina’s full year electricity generation in 2019. The cost of electricity for mining has also risen about 145 times from $ 440 at the end of 2015. “Bitcoin’s energy consumption is proportional to the price volatility of this cryptocurrency,” Citigroup said.

The Cambridge University power consumption index shows that the annual electricity consumption due to Bitcoin mining activities is around 141.6TWh, equal to the average electricity consumption of Sweden and Malaysia combined. . This argument is also confirmed by the latest research from MasterCard, which has just released a carbon computer model, which shows that 54% of people surveyed think that environmental protection is now more urgent than with before the Covid-19 translation broke out.

Previously, due to consideration of environmental factors, the Chinese government also made the first moves to control the virtual currency mining industry. Specifically, areas such as Inner Mongolia, Sichuan, and Xinjiang in this country have attracted large numbers of operators to build mining factories due to low electricity prices. This situation leads to the risk of an energy-saving “plan break” under China’s commitment to stop increasing carbon emissions by 2030 and reaching carbon neutral by 2060.

Before that, most of the electricity used in Bitcoin mining came from pollution sources. The CCAF team investigated the energy use of Bitcoin “mines” around the world and found that about two-thirds of that came from fossil fuels. Blockchain technology that supports cryptocurrencies requires strong computation in design, which means huge energy consumption.

Therefore, in order to maintain profits as well as avoid the control from regulators, many mining factories here have sought to use renewable energy sources such as solar power, wind power and hydroelectricity to fill seats. empty. The latest research published by Coin Metrics co-founder Nic Carter shows that 39% to 76% of Bitcoin miners have turned to renewable energy.

Mức tiêu thụ năng lượng của Bitcoin cao gấp 66 lần so với năm 2015 - Ảnh 2.

The trend towards operating Bitcoin solar mining farms also began to bloom in Vietnam from the beginning of March this year, when the virtual currency fever rose. According to Mr. PH (Da Nang), after transferring the “buffalo plow” system to a solar farm, the cost of his Bitcoin mining system has decreased by about 30% every month.

In contrast, as an investor of a large solar farm system in Kien Giang, Mr. K has also invested in a new Bitcoin mining system to take advantage of excess energy, especially when the current FIT price is present. revealing many limitations, depending too much on purchasing agents, K and farm owners have to find out by themselves to avoid losses.

The solution of using renewable energy sources to mine Bitcoin and some other virtual currencies is also applied by many internet owners, in order to solve the difficult situation caused by the sluggish business caused by the Covid-19 epidemic. However, after a period of testing, the effect, although not really significant, “but there is no other option, so I have to throw the fishing rod through the day” according to Mr. Tuan, an internet shop owner in Quang Ninh. .

In fact, the power consumption and the carbon emissions generated in the Bitcoin mining process are urgent issues that need to have a suitable plan for effective treatment. Meanwhile, the application of renewable energy sources to replace can be a right choice. However, there are still legal obstacles, as well as the problem of balancing these resources to maintain profitability in terms of ensuring the environment and avoiding climate change. Exploits need to be taken into account in the future.

Share the news now

Source : Genk