18 May 2018 Marsha Tusk
Bitcoin Mining Consumption to Reach 0,5% Of World’s Energy
The report ‘Bitcoin’s Growing Energy Problem’, published on 16 May, by the economist Alex de Vries, states that currently the BTC network mining consumes nearly 2.55GW of electricity and is expected to grow further to 7.67GW.
In particular, Ireland’s consumption is estimated at 3.1GW, whereas Australia leads with 8.2GW. Furthermore, early in 2018, it was reported that Iceland’s crypto mining activities are consuming more energy than the households in the country. De Vries states that the Bitcoin network has a big problem that is growing bigger fast.
Although the coin is really needed in underbanked countries, there is still a concern about the potential harm that mining causes to climate changes. His report shows the significant difference between the resources needed for the digital and the regular financial systems.
The peer-reviewed study suggests that further scientific research needs to be conducted. Furthermore, precision in calculations remains a challenge because of the different types of mining machines. De Vries hopes that his work will set the tone for an important conversation that the world needs to start.
There is a degree of controversy, as blockchain technology is used to help facilitate environmental optimization in some cases. A fresh example is IBM’s project in partnership with Veridium Labs focused on tokenizing carbon credits to help companies monitor their carbon footprint.
De Vries also notes that the Lightning Network protocol might help manage the issue for some time. The Lightning Network is a payment protocol that represents a second layer on top of a blockchain network.