Along with the rise of The Bitcoin comes the rise of power consumption. At the same time, the environment is desperately in need of less of it.
One Bitcoin transaction consumes on average 200 kWh of electricity. I can easily run 400 washing cycles with 200 kWh. In fact, it is enough to run my entire household of three people for a month.
The image above shows a world map of countries that currently consume less power than global Bitcoin mining. According to Digiconomist, Bitcoin mining consumes 33 TWh every year, which is about the same as Denmark. More disturbingly, at a power consumption growth rate of 25%, Bitcoin alone will consume as much electricity as The US by 2019, and even as much as the entire world now by 2020.
The big question now is: will the world be able to supply the staggering demand of power sustainably? This issue is rather challenging. Bitcoin does not stand alone when it comes to increasing power demand; the very heart of our modern economy is based on the digital world and therefore relies heavily on power generation to run the data centers.
Bitcoins power usage is mostly generated by coal-fired power plants. The consequences of burning and mining coal include land use, waste management, and water and air pollution, which cause severe health issues. Despite those concerning consequences, people and governments are reluctant to give up the use of coal as an energy source because of its abundance and cheap rate.
The power consumption of Bitcoin is a challenging, yet necessary opportunity for the power industry to develop sustainable and clean power generation, and fast. Currently, the power industry is by no means able to match demands with sustainable energy. If the world cannot find a way to produce sustainable and clean energy fast, we will find ourself burning coal for the next generations to come.
Sources
https://bigthink.com/strange-maps/bitcoin-consumes-more-energy-than-159-individual-countries
https://digiconomist.net/bitcoin-energy-consumption
https://arstechnica.com/tech-policy/2017/12/bitcoins-insane-energy-consumption-explained/
https://www.newsweek.com/bitcoin-mining-track-consume-worlds-energy-2020-744036
https://www.weforum.org/agenda/2017/12/bitcoin-consume-more-power-than-world-2020/
