Bitcoin's energy consumption ⚡️
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
“Bitcoin uses too much energy”
This statement is often repeated by mainstream media and repeated by average citizens who are uninformed about Bitcoin's energy consumption.
Here is an overview of how much energy Bitcoin consumes as compared to cryptocurrencies, major industries, and countries so you can put Bitcoin's energy consumption in context and understand why it is not a bad thing.
*All data presented is sourced from The Bitcoin Mining Council’s Global Bitcoin Mining Data Review Q3 2022.
Bitcoin's Consumption
As of October 2022, Bitcoin consumes 0.16% (266 TWh) of the world's energy production.
Bitcoin vs Countries (TWh)
Below is a graph showing how global bitcoin mining electricity consumption compares to other countries.
Bitcoin vs Other Industries (TWh)
Below is a graph showing how global bitcoin mining electricity consumption compares to other major industries.
Bitcoin vs Other Crypto Assets (TH/s)
Hash rate refers to the total combined computational power that is being used to mine and process transactions.
Bitcoin dominates 99% of all crypto power with 267,390,203 TH/s. Here are some other crypto assets for comparison:
Ethereum Classic - 141 TH/s
Dogecoin - 410 TH/s
Litecoin - 467 TH/s
Bitcoin vs Countries Carbon Emissions
As of October 2022, Bitcoin generated 0.10% (0.04 BMt) of the world's CO2 production. The world's total estimated CO2 production is 34.8 billion metric tons (BMt).
Below is a graph showing the sustainable power mix (% of TWh) of Bitcoin's energy consumption as compared to other countries.
Takeaway
Bitcoin uses energy to secure the network and that is not necessarily a bad thing.
Much like the aviation industry gives people the ability to fly and improves their quality of life while consuming a considerable 4,046 TWh per year, securing the bitcoin network with 226 TWh worth of energy gives individuals access to a monetary system that greatly improves the quality of life, especially for users in countries experiencing double-digit inflation.
Within the next decade, bitcoin mining efficiency is expected to improve by 6x with an even healthier mix of sustainable energy sources ultimately making it the apex asset of efficient energy consumption.
Lastly, let’s not forget about the 6,691 TWh used to power the Military Industrial Complex backing fiat currencies today.
Happy Wednesday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
