Controversy is raging over Bitcoin energy consumption at a faster rate than the planet, and companies face setbacks from the public and shareholders to invest in Bitcoin.
Bitcoin uses 66 times more energy than it did in 2015, according to a Citigroup Inc. report. It added that the carbon emissions associated with mining will likely come under further scrutiny, according to Bloomberg.
This claim is supported by a new study by Mastercard, which has just released its carbon calculator, which shows that 54 percent of people believe that preserving the environment is more important now than it was before COVID-19.
Citigroup analysts also stated that:
“As the value of Bitcoin rises, so does its energy consumption.”
However, grid power consumption is growing at a much slower rate than the price, which has increased about 170 times over the same period.
The Citigroup report, citing data from the University of Cambridge Alternative Finance Center, says global electricity demand from the Bitcoin network has reached 143 TWh per year. This is about 4% higher than Argentina’s total electricity production in 2019.
The Cambridge Bitcoin Electricity Consumption Index (CBECI) currently estimates annual electricity consumption from Bitcoins somewhere between Sweden and Malaysia at 141.6 TWh per year.
The report says China may cut production due to environmental concerns:
“ Mining and using these ‘currencies’ is undoubtedly energy-intensive and could face further regulatory scrutiny as adoption expands, especially if the United States continues to increase its presence in the cryptocurrency market and China hits market leader Bitcoin mining if it negatively impacts the climate. ,
Bitcoin’s impact on the environment has been hotly debated in many discussions of whether it has been disputed or at least proved more complex than what opponents suggest. In late March, Coin Metrics co-founder Nick Carter filed a detailed rebuttal of some of these important claims.
In it, he mentioned that the four provinces of China have an abundance of energy, which generates most of the BTC production, most of which comes from solar, wind and hydroelectric power. In addition, the Chinese government restricts or boosts electricity by removing excess power from the grid or public consumption, often to maintain price levels.
To maintain profits, miners usually use the cheapest electricity available. It is an annual migration to Sichuan to take advantage of cheap hydropower during the rainy season. Research shows that 39% to 76% of Bitcoin mining uses renewable energy sources.