With a market cap of around $422 Billion, Bitcoin has become the largest cryptocurrency in the world. In the last few weeks, the cryptocurrency broke records again and created a new all-time high of $61,000+. Although all currencies are going up in general, the value of Bitcoin increased unbelievably.
We all know that price of Bitcoin touched $61K+ in recent weeks and still showing an upward trend. Also, most of us think bitcoin is a virtual currency so that has no expenditure on mining. Anyone with a computer can do it but the fact it consumes a lot of time and electricity as well manpower. And it consumes a lot of electricity to make it. Would you believe that consumption of electricity far exceeds which is equal to the electric supply consumed in many countries?
Bitcoin mining consumes a huge amount of electricity. We can see this interesting fact from the reports that Bitcoin mining consumes more electricity than certain countries which interestingly include Australia and Bangladesh.
In a study conducted by Dutch economist Alex Dree Vries, it was reported that bitcoin 38.10 MT (Milliliter Tons) of carbon footprint every year. Compare this with the carbon footprint of big cities. Even there, the situation is not as bad. It is about 32 MT in Mumbai, and 21.50 MT in Bangalore, some of the most polluted cities in the world.
The information says that on average every bitcoin transaction needs about 300 kilograms of carbon dioxide. The equivalent of 75,000 credit card swipes is the carbon footprint generated from a swipe.
How does bitcoin consume electricity?
There is no doubt that high-tech computers work for a long time for mining bitcoin, therefore a lot of electricity is used in this process. The more we mine bitcoins means the more computers work for a longer time so more electricity consumed.
According to the information, the Bitcoin network used 30 TWh/hours (TWh) of electricity in the year 2017 alone. According to the report of Breach, this consumption has now gone up twice as much in 2021. Go that 78 to 101 is equal to 30TWh/hour.
Interesting, isn’t it?