For some time now, the energy consumption of Bitcoin has been singled out because the ecosystem that runs the cryptocurrency would be very energy intensive. Moreover, China has used this pretext to drive minors out of its territory. A study by Bloomberg has just further incriminated bitcoin. Its energy consumption for 2021 would already exceed that of last year, which was already criticized by environmentalists.
In his study, Bloomberg reported:
It is estimated that the Bitcoin network consumes around 67 TWh [térawattheures] of electricity in 2020, and its total consumption has already exceeded that figure in 2021. By the end of this year, it is expected to have used 91 TWh of energy, or as much as Pakistan.
However, these statistics would be underestimated because according to data from the CBECI (Cambridge Bitcoin Electrcity Consumption Index) indicator, Bitcoin’s energy consumption is already around 95.68 TWh. The CBECI is the most widely used indicator to measure the “ Carbon Footprint Of Bitcoin.
Bitcoin and energy: Things go wrong
A few weeks before the publication of this Bloomberg research, the New York Times announced that bitcoin consumes 7 times more energy than Google. The newspaper also reported that the consumption of Bitcoin represents 0.5% of the energy used globally with a percentage of growth of 10 times more over the past 5 years.
According to data from the CBECI, total energy consumption had already reached 141 TWh in May before the Chinese crackdown. Two months after China ousted miners, BTC power consumption is rebounding but remains far from pre-crypto crash levels. It has stabilized between 85-95 TWh for nearly 30 days.
Is this a bit too much?
Bitcoin consumes a lot of energy, but what type? The CBECI estimates that nearly 39% of the energy in the crypto ecosystem comes from renewable sources. This would represent 37.05 TWh of green energy used by bitcoin. Therefore, a minimum of 1,099,587,799 gallons of green gas emitted on that date.
For the Bitcoin Mining Council, the consumption of green energy is much higher. Decrypt.co revealed to us that Council officials made a presentation during the month of July in which they showed that BTC miners use over 56% of electricity produced from renewable sources.
Bitcoin price is waking up during this time
Croix d’Or: Great Opportunity for BTC
BTC appears to be recovering from the fall on September 7. As of this writing, Bitcoin’s price is up 4.04% breaking the 200-day moving average ($ 45,584). This is a very good signal for the future of bitcoin’s long term trend. The Golden Cross between the 20-day moving average and 200 played an important role in the rally in BTC.
However, traders are hoping that the bulls can put pressure to drive bitcoin above the 20-day moving averages ($ 47,884) so ​​they can look forward to a bullish move in the long term.