In order to mine cryptocurrencies, large amounts of energy have to be used. So much so that just to “mine” and verify transactions related to Bitcoin, the most important cryptocurrency, more electricity is used each year than all of Argentina uses to supply its population.
Bitcoin broke another valuation record this week
This comes from a report made by researchers at Cambridge University in the UK who claim that Bitcoin is already consuming 121.36 terawatt hours (TWh) per year, more than Argentina (121 TWh per hour per year) or what the Add the Netherlands (108.8 TWh per hour and year).
In short, Bitcoin is expected to hit energy consumption across Norway (122 TWh per hour per year) and is not far from Spanish consumption which is around 250 TWh per hour per year.
Meanwhile this week Bitcoin’s value has not stopped rising and it already hits $ 48,000 per unit. The announcement of Tesla that it bought 1.5 billion bitcoins and that you plan to accept payments in that currency in the future has contributed to the ongoing euphoria about cryptocurrency.
However, the constant increase in Bitcoin also means that more and more energy is consumed. According to researchers at the University of Cambridge, this will not change unless the price of the cryptocurrency is significantly devalued.
The higher electricity consumption also means higher emissions of carbon dioxide into the atmosphere. According to those responsible for the investigation, this is also a significant problem that is not addressed.
Although the study focuses on Bitcoin, as it is the most widely used virtual currency, the rest of the cryptocurrencies – known as altcoins – have the same problem in that they also require energy to be mined to review all transactions. That’s when, by using a lot less, the effects are significantly less.