Bitcoin accounts for as much as 77% of the electricity consumed on cryptos, according to data presented by Bankless Time.
“This is an alarming statistic and one that should cause concern for all those involved in the crypto world,” says BanklesTimes CEO Jonathan Merry.
“Not only is bitcoin’s electricity consumption putting a strain on resources, but it’s also emitting worrying levels of greenhouse gases. There’s a need for urgent interventions to change this trend.”
By mid-August 2022, estimates put the US’s share of global bitcoin (BTC) electricity usage at between 33-billion and 55-billion kWh per year, which is comparable to the consumption of some nations, states, or critical energy services.
This could have serious environmental consequences. The American crypto industry currently emits between 25-million and 50-million metric tons of CO2 annually, of which the BTC network accounts for the most emissions.
Bitcoin’s high electricity consumption can be attributed to its proof-of-work algorithm and the block size limit. The two require a lot of energy to verify transactions.
Recently, there have been calls for new forms of mining that don’t require such a large amount of electricity. There are also plans to abandon proof-of-work mining altogether and move towards more sustainable models like proof-of-stake mining.
As climate change continues to be a pressing global issue, it is important to discuss its potential risks and consequences. One major consequence of climate change is its financial impact. In 2021, climate disasters set back the $145-billion.
This number is only expected to rise in the coming years as climate change becomes more severe.