How Much Energy Does Bitcoin Use and How Does It Affecting the Environment

The use of cryptocurrency in the last few years has been increasing, especially the mining of Bitcoin, making it the largest crypto asset that is mined. The reason is that Bitcoin works on thousands or even more computers all over the globe to maintain the blockchain network. However, the network uses more electricity than one can imagine. Here is what you need to know about energy usage via Bitcoin.

How Much Energy Does Bitcoin Use?

As Bitcoin works on many computers at a time which makes use of more electricity. According to an estimate, the annual mining of Bitcoin consumes 91 terawatt-hours of electricity which is equivalent to 0.5% of electricity usage all over the globe. Further, the completion of a single transaction on a Bitcoin network consumes around 1,449 kWh of electricity.

Why Does Bitcoin Use So Much Energy?

Well, as we all know that Bitcoin is a digital currency and is the process of using internet sources on several computers linked with each other and working in collaboration. The decentralized structure of the Bitcoin, the miner, and several activities performed on a network require energy. Moreover, the verification of each transaction and solving equations on a larger computer consumes more electricity than one can imagine. Each step, including mining, certification, and rewarding requires electricity to proceed.

How Does Electricity Usage Via Bitcoin effect The Environment?

The use of electricity via the Bitcoin network produces carbon in the form of carbon dioxide, which increases the greenhouse effect. The consumption of electricity involves the utilization of more fossil fuels by power plants. Moreover, electronic waste is another problematic issue, on average the waste produced by the mining of Bitcoin is 34 kilotons.

How To Reduce the Use of Electricity Via Bitcoin?

The problem related to the excess use of electricity via Bitcoin can be lowered to some extent by:

  • Switching to renewable energy – bringing environmentally friendly energy.
  • Transition to proof-of-stake systems – works on one problem at one time, thus saving energy.
  • Embrace pre-mining – to prevent extravagant computing.
  • Introduce carbon credits or fees – purchase credits for the emission of carbon.


Cryptocurrency mining, especially Bitcoin, is gaining more attention as it provides easy and secure ways to invest and earn money. However, it has another side as well. The Bitcoin network consumes a larger amount of energy than one can imagine. All the activities performed on a network uses energy; more power consumption ultimately causes the release of more carbon, affecting the environment greatly.

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