Bitcoin has consumed more energy by now than it did in all of 2020
Reports confirm that 2021 consumption already passed last year’s numbers
According to a Bloomberg report, Bitcoin network will have consumed by the end of 2021, 91 TW/h (terawatt-hours or one trillion watts per hour), consuming more than the estimated 67 TW/h for all of 2020.
An estimation has been made by the Cambridge Bitcoin Electricity Consumption Index saying that BTC’s power consumption is going even higher, setting to consume 95.68 TW/h by the end of the year. It can be compared with the power consumption of the Philippines.
Bitcoin has a mining process that involves a Proof of Work consensus algorithm, meaning that many computers dispute to solve a mathematical problem in order to lead the mining and once this is settled, numerous participants in the network, called nodes, verify the transaction in the blockchain.
This process requires a lot of energy consumption, since there are many computers with potent configurations trying to solve the extremely complex math problems at the same time. All the so-called ‘miners’ receive a reward in return for their work, so it’s an activity that’s growing and generates initiatives like huge “mining farms” (complexes filled with computers mining).
One solution that is being developed and more adopted with time is the Proof of Stake consensus algorithm, which does not involve this “race” of computers to mine a block - instead it requires only one miner selected by the amount of his investments in a crypto project to start the process.
Moreover, clean energy sources are at the heart of the discussion, even with the alternative option of buying carbon credits through environmental platforms to balance a company's carbon emissions.
Nowadays, Klever is certified by Moss.Earth with a Carbon Neutral seal, which confirms the company’s compromise with cleaner energy and a healthier future.