Electricity consumption of Bitcoin and cryptocurrencies, also known as digital gold, has recently become one of the most curious issues. We have discussed this topic briefly as there is a lot of information pollution on this topic.
Bitcoin and cryptocurrencies have arguably become one of the most popular economic values in recent years. 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 produced by miners, not a central bank.
Mining is the business of solving complex mathematical problems and generating new cryptocurrencies by approving 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, it will not be a realistic competition as our competitors in the mining race today are large companies consisting of thousands of very powerful computers and special mining devices.
Another very important result of this competition is energy consumption. Millions of devices around the world are working non-stop to stay ahead in Bitcoin production. In addition to the electrical energy consumed by these devices, extra energy is also consumed for cooling the devices.
In fact, one of the reasons that makes mining very difficult is the high amount of energy requirement. This used electricity is mostly spent on cooling systems. For this reason, leading mining companies in the world often prefer to set up farms in cold climates. For example; Russia, China, Georgia, the United States, Canada, Sweden or 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 as a small country.
Because of the energy consumed and the carbon gas released as a result, it is very difficult to say environmentally friendly for Bitcoin.
You can access data on Bitcoin electricity consumption published by the University of Cambridge Judge Business School online.
Some companies have started using fossil fuels for the high amount of energy consumption needed in Bitcoin production. While trying to minimize the carbon footprint, they also became the guide by raising awareness.
On its website, Cambridge University includes data that compares the amount of electricity spent on Bitcoin with the electricity consumption in the world. For example, the consumption of electrical devices that are always open 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 controversy about Bitcoin's electricity consumption. On the other hand, considering the researches and measures taken, using renewable energy and turning to greener alternatives proves that we contribute to the limited supply of nature.