Bitcoin consumes more electricity per year than the whole of Argentina
Bitcoin consumes more electricity per year than the whole of Argentina, according to an analysis by the University of Cambridge.
According to the study, the largest and best-known cryptocurrency consumes about 121.36 terawatt-hours (Twh) per year. The whole of Argentina, with a population of approximately 45 million, consumes 121 Twh.
On Saturday, bitcoin continued to strengthen and its price exceeded $ 57,000 (46,956 euros) and reached a new record high.
Bitcoin mining consumes a huge amount of energy, but the constant rise in its price is a motivation for more and more people to mine bitcoin. High energy consumption is an intrinsic feature of the bitcoin system and will only decrease when its price is reduced, scientists said.
If bitcoin were a state, according to calculations by the Cambridge Center for Alternative Finance, it would be among the 30 countries with the highest electricity consumption in the world.
Study author David Gerard predicts that the electricity consumption of the bitcoin system will continue to grow, as will the associated carbon dioxide (CO2) emissions. “It’s very bad that we’re literally wasting all this energy on the lottery,” Gerard said.
The paradox is that one of the reasons for the current strengthening of bitcoin was the announcement by Tesla that it had invested USD 1.5 billion in bitcoin. As an electric car manufacturer, Tesla bases its image on ecology.
In 2020, Tesla received just $ 1.5 billion in environmental subsidies paid by taxpayers. “And they put $ 1.5 billion into bitcoin, which comes largely from coal-fired power. These subsidies need to be checked,” Gerard said.