- By the end of 2018, the network could consume up to 7.7 megawatts, almost as much as Austria (8.2 gigawatts).
Bitcoin, the most popular cryptocurrency, currently consumes almost as much power as Ireland. And its consumption could continue to grow. The energy power needed to operate this currency based on blockchain technology could represent 0.5% of total global electricity production by the end of the year says a study published in Joule.
Current estimates position the Bitcoin network consumption at 2.55 gigawatts. Almost as much electricity consumed as in Ireland for one year (3.1 gigawatts). And a single transaction consumes as much electricity as an average household in the Netherlands in one month.
By the end of 2018, the network could consume up to 7.7 gigawatts, almost as much as Austria (8.2 gigawatts). And 0.5% of the total world consumption.
Towards the 5% of consumption
"For me, half a percent is already shocking enough, it's an extreme difference from the conventional financial system, and this growing demand for electricity will certainly not help us achieve our climate goals," said Alex de Vries , author of the study, economist and blockchain specialist, who works for PwC.
If the price of Bitcoin continues to appreciate (with highs and lows), as some experts predict, Alex de Vries thinks that the network could one day consume five percent of the world's electricity.
The transaction system on which Bitcoin is based depends on the computers that timestamp the transactions as part of a block chain to avoid duplicates. The computers in the network perform continuous calculations to create the transaction blocks in the chain. Hence the electrical power needed to operate the system.