5/10/2021 3:35:01 PM | less than a minute read

How power-needy is Bitcoin?

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Please use some brainpower (perhaps 12 watts) to give this thought-provoking article a review. While energy consumed by mining has no analog for fiat currency, Bitcoin detractors who complain about energy needs may not be fully weighting the comparable consumption from day-to-day electronic transactions in fiat. Further, the ability to locate mining operations where green(er) energy is abundant (e.g., near geothermal sources) may be underappreciated.

On the face of it, the question about energy use is a fair one. According to the Cambridge Center for Alternative Finance (CCAF), Bitcoin currently consumes around 110 Terawatt Hours per year — 0.55% of global electricity production, or roughly equivalent to the annual energy draw of small countries like Malaysia or Sweden. This certainly sounds like a lot of energy. But how much energy should a monetary system consume?

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