Reading time: ~2 m
If by 2040 the price of bitcoin rises to $ 2 million, the annual energy consumption of the network of the first cryptocurrency will reach 894 TWh. This figure is about 10 times higher than the current one, said Arcane Research analyst Jaran Mellerud.
According to his estimates, at the price of digital gold at $ 500,000, the level of energy consumption in annual terms will be 223 TWh, which is slightly more than twice as high as current values.
The projected level of energy consumption of the price of bitcoin at different prices of the first cryptocurrency. Data: Arcane Research.
“If the price of bitcoin reaches $2 million by 2040 and transaction fees remain at historically average values, the share of digital gold in global energy consumption will be 0.36%,” Mellerud wrote.
The chart above shows that the pessimistic scenario from Arcane Research assumes the price of bitcoin at $ 100,000. At this value, the energy intensity will be 45 TWh in 2040.
According to the Cambridge Center for Alternative Finance, currently the consumption of the bitcoin network is comparable to countries such as the Philippines, Kazakhstan, Pakistan and the Netherlands.
The report of the Bitcoin Mining Council noted that over the year, the energy efficiency of bitcoin mining increased by 46%, and the share of “green electricity” in consumption increased by 6% over the year and reached 59.5%.
Recall, Members of the Committee on Energy and Commerce of the US House of Representatives demanded from miners data on the impact on the environment.
#Analyst #Arcane #Research #predicted #energy #consumption #bitcoin #network