As well as attracting criticism for price volatility, use in illegal transactions and thefts from exchanges, Bitcoin has also provoked controversy for the enormous amount of electricity it consumes. A new online tool released by the University of Cambridge estimates the crypto-currency network's energy usage and compares it with other entities. It found that Bitcoin uses an estimated 61.76 terawatt-hours (TWh) of electricity per year - more than many countries and approximately 0.28% of total global electricity consumption.
By comparison, the Czech Republic uses an estimated 62.34 TWh per year while Switzerland consumes 58.46 TWh. If Bitcoin was a country, it would be the 41st most-energy-demanding nation on the planet. The crypto-currency's massive energy demands come from the computing power needed for mining, a process whereby machines are connected to the network to verify transactions which involves solving puzzles. In order to lower energy costs, some Bitcoin miners have relocated to countries such as Iceland where geothermal energy is cheap and abundant while the Arctic air helps with cooling.
*Click below to enlarge (charted by Statista)
Estimated annual electricity consumption in 2019.
