A new study by the New York Digital Investment Group (NYDIG) predicts that Bitcoin’s energy consumption will remain below 0.5% of global over the next decade.
This month, NYDIG published its research paper “Bitcoin Net Zero” and found that Bitcoin’s energy consumption and carbon emissions will not rise in the coming years, even if prices rise.
A study written by Nick Carter, partner at Castle Island Ventures and NYDIG founder Ross Stevens, discusses how network carbon emissions may change in the future based on bitcoin price fluctuations, mining problems and energy consumption.
The most aggressive predictions of the study have shown that Bitcoin outliers will still represent a small fraction of the total even if the price of BTC exceeds the ceiling by 2030, concluding:
“Even in the most aggressive and advanced scenario, when Bitcoin hits $ 10 trillion by 2030, emissions are only 0.9 percent of the global total and energy consumption is only 0.4 percent of the global total.”
The report predicts future growth in Bitcoin mining based on 2020 data. Researchers calculated the historical power consumption of bitcoin miners as a function of network speed and machine efficiency.
The authors found that in 2020, Bitcoin consumed 62 TWh of electricity and generated 33 million tons of carbon dioxide emissions, which is only 0.04% of global energy consumption and 0.1% of global carbon emissions.
The authors argue that the carbon waste associated with Bitcoin mining was “globally negligible” during 2020.
On the subject: Bitcoin energy consumption has already surpassed all of 2020 this year
Currently, BTC mining uses 101 TWh per year, or 0.45% of the world’s electricity. According to the University of Cambridge, the Bitcoin network uses more energy than the entire country in the Philippines.
However, the university also found that Bitcoin uses less energy than all refrigerators in the United States combined, with only 4.6% of the total energy used to air conditioning homes worldwide.
The report also concludes that the prospects for “decarbonizing” Bitcoin mining in the future are very promising, and states:
“In the long term, Bitcoin’s carbon intensity (and therefore the absolute carbon footprint of Bitcoin) will decline as renewables continue to develop and countries strive to decarbonize their electrical grids.”