Mining for Bitcoin requires specialized, high-powered computers. The energy they suck up is rising by the year.
WASHINGTON — Since launching in 2009, Bitcoin has become arguably the most well known cryptocurrency. As of publishing, a single Bitcoin is worth almost $38,000.
But creating and minting a Bitcoin is extremely difficult and takes a lot of computer power. That means it can put a big weight on global energy usage.
THE QUESTION
How much energy is used for Bitcoin mining?
OUR SOURCES
THE ANSWER
The University of Cambridge estimates that yearly, Bitcoin mining uses more energy than all refrigerator usage in the U.S. If it was its own country, Bitcoin mining would be number 27 in energy consumption.
WHAT WE FOUND
Mining Bitcoin takes a massive amount of computing power. It requires the use of specialized, highly-powered computers whose sole job is to beat complex puzzles in order to unlock Bitcoin transactions. When a transaction is successfully unlocked, a block is created, more Bitcoins are minted and they are awarded to the computer that cracked the code. It’s winner take all, meaning the more powerful your computer system, the more likely you are to win. And there are a lot of people trying to win.
“Literally millions of computers around the world are racing to guess that number. And that consumes a lot of electricity,” Dr. Angel said. “Right now it consumes the equivalent of 15 Chernobyl power plants spinning around the clock.”
The University of Cambridge in the UK analyzes and estimates the global energy usage for Bitcoin mining and builds comparisons to help put it all into context. They estimate that Bitcoin mining uses more energy than all refrigerator usage in the U.S., uses almost as much energy consumption as all global copper mining, and that if it was its own country, bitcoin mining would be ranked 27th in energy consumption.
Credit: University of Cambridge Bitcoin Electricity Consumption Index
University of Cambridge Bitcoin Electricity Consumption Index estimates that if Bitcoin mining was its own country, it would rank 27th in energy consumption, between Ukraine and Egypt.
Because of Bitcoin’s built in pseudo-anonymity, the Cambridge Bitcoin Electricity Consumption Index numbers are estimates put together by experts. You can read their methodology here.
For similar anonymity reasons, it’s difficult to calculate the environmental impact that Bitcoin mining has on climate change–some miners may be based in areas that use renewable or nuclear energy to provide electricity. But we do know that a majority of global electricity runs off coal and fossil fuels, and the carbon emissions from both contribute massively to climate change.
But the environment isn’t the only cost. Angel believes bitcoin mining is hitting your wallet, too. He explains that it boosts demand for electricity enough that it may cause household energy prices to rise.
"By my calculations, the amount of bitcoin mining that's going on right now, as we speak, is probably adding about 4% to your winter heating bill," Angel said.
FAQs
THE ANSWER. The University of Cambridge estimates that yearly, Bitcoin mining uses more energy than all refrigerator usage in the U.S. If it was its own country, Bitcoin mining would be number 27 in energy consumption.
Does Bitcoin mining use a lot of energy? ›
The CBECI estimates that global electricity usage associated with Bitcoin mining ranged from 67 TWh to 240 TWh in 2023, with a point estimate of 120 TWh. The International Energy Agency estimated global consumption of electricity during 2023 to have been 27,400 TWh.
Do US Bitcoin miners use as much electricity as everyone in Utah? ›
Bitcoin miners in the US are consuming the same amount of electricity as the entire state of Utah, among others, according to a new analysis by the US Energy Information Administration. And that's considered the low end of the range of use.
What percentage of Bitcoin mining is renewable energy? ›
On Jan. 18, 2024, Bitcoin mining sustainable energy usage hit a new all-time high of 54.5%, according to the Bitcoin ESG Forecast.
What is the most energy efficient way to mine Bitcoin? ›
ASIC (Application-Specific Integrated Circuit)
ASIC mining rigs are the top-performing Bitcoin mining hardware in the market today. These rigs are customized and built only to mine cryptocurrencies. Therefore, they outperform other chips in performance and energy efficiency.
How much electricity does 1 Bitcoin mining use? ›
The New York Times recently equated the total power consumed by Bitcoin annually to what's used by Finland in one year. The fact is that even the most efficient Bitcoin mining operation takes roughly 155,000 kWh to mine one Bitcoin. By way of comparison, the average US household consumes about 900 kWh per month.
How much electricity does 1 Bitcoin miner use? ›
How Much Electricity is Needed to Mine 1 Bitcoin? As a solo miner, an average of 266,000 kilowatt-hours (kWh) of electricity is required to mine a single Bitcoin (BTC). This process would take approximately seven years to complete, demanding a monthly electricity consumption of about 143 kWh.
How much does it cost to mine 1 Bitcoin in USA? ›
Mining a Bitcoin depends on your energy rate per Kwh, it costs $11,000K to mine a Bitcoin at 10 cents per Kwh and $5,170K to mine a Bitcoin at 4.7 cents per Kwh. Learn how and if mining right for you in 2024! As Bitcoin's price goes up, so do the miners' prices.
How much electricity does bitcoin mining use in Texas? ›
“There is about 2,450 [megawatts] of bitcoin mining in Texas, but this load isn't adding to peak demand since, as the data shows, miners curtail their consumption during peak demand,” Bratcher said in his email.
What is Bitcoin mining actually doing? ›
Bitcoin mining is an energy-intensive process involving mining devices and software that compete to solve a cryptographic problem. The Bitcoin mining process also confirms transactions on the cryptocurrency's network. As an incentive to participate in the process, bitcoin is rewarded to those that win the competition.
Miners who successfully add blocks to a blockchain automatically receive transaction processing fees and new digital tokens. Creates economic opportunities. The accessibility of crypto mining is creating new business opportunities for tech-savvy people around the world.
How much does Bitcoin mining contribute to global warming? ›
A 2022 non-peer-reviewed commentary published in Joule estimated that bitcoin mining resulted in annual carbon emission of 65 Mt CO 2, representing 0.2% of global emissions, which is comparable to the level of emissions of Greece.
Which crypto uses least energy? ›
Unlike cryptocurrencies such as bitcoin, cardano uses a proof-of-stake system called Ouroboros. This requires users to purchase tokens in order to join the network, saving significant amounts of energy. It's estimated that Cardano is about 60,000 times more energy efficient than bitcoin.
How long does it take to mine one BTC? ›
The shortest amount of time it can take to mine at least 1 bitcoin is about 10 minutes. However, the actual time it can take you depends on several factors such as the hashing power of your mining hardware, the overall network hash rate, and the Bitcoin mining difficulty.
What is the cheapest way to mine Bitcoin? ›
However, if there is a cheaper way to mine, it's cloud mining. It doesn't require the purchase of equipment or the payment of electricity bills. However, it has its own drawbacks, including a lack of flexibility in choosing a coin to mine and the risk of fraud. In addition, cloud mining contracts still cost money.
What uses more energy than crypto mining? ›
However, recent studies have found that, while Bitcoin has massive environmental implications, the traditional banking sector and gold mining give the digital currency a good run. In fact, the former is said to consume at least double the energy annually.
How much energy does Bitcoin mining use compared to countries? ›
In 2020 to 2021, Bitcoin consumed 173.42 terawatt hours of electricity - enough to rank it 27th among nations, trumping the likes of Pakistan with a population of over 230 million people. The resulting carbon footprint was the equivalent of burning 84 billion pounds of coal.
Why does Bitcoin mining use so much water? ›
Miners use water directly to cool their computer servers and indirectly by running both computers and air conditioning systems powered by gas- and coal-fired power plants that require cooling water. Some of the cooling water used by power plants evaporates and is no longer available for anything else.
