Bitcoin’s electricity consumption has fallen by 24% since the end of July

Bitcoin (BTC) mining is consuming less power today than it did at the end of July this year. According to Digiconomist, mining consumed 115.21 TWh (Terawatt hours) of power at press time, representing a 24% slump from the 152.52 TWh it required on 31st July 2024.

These findings could be welcome news for Bitcoin enthusiasts who’ve been fighting to redeem the image of the premier cryptocurrency. BTC has attracted criticism from environmentalists who hold that its mining is an energy-intensive activity that harms the earth.

These have, for instance, pointed out the large volumes of water consumed by the process and likened its carbon emissions to that of whole countries.

What’s behind Bitcoin’s electricity consumption drop?

The energy consumed by data centers has come under increased scrutiny in the past few years as a surge in electricity demand fueled by artificial intelligence and cryptocurrency mining conflicts with emissions reduction goals. However, the recent drop has relieved environmental advocates and policymakers.

Source: Digiconomist

The fall in data centers’ energy consumption could be attributed to different reasons, one of which is a deliberate attempt by BTC miners to adopt more sustainable mining methods. One way they are doing that is by embracing hydro-powered mining. Projects like the Grand Ethiopian Renaissance Dam suggest that the country could be the next BTC mining hub.

A recent news report claimed that Ethiopia’s energy supplier has struck an agreement with 21 BTC miners to set up shop in the East African country. These have been drawn by the possibility of tapping into the horn of African countries’ massive power supply following the commissioning of the continent’s largest dam. Ethiopia also offers them more affordable power compared to other regions.

Commenting on the development, Ethiopian government official Yohade A. Zemichael said:

The Ethiopian government permitted bitcoin mining mainly because the companies pay in foreign currency for the electricity they consume.

Yohande A. Zemichael

Is BTC as toxic as they say?

BTC mining’s power consumption and supposed environmental footprint remain heavily contested issues. Proponents and Opponents of the premier coin continue putting forth robust arguments and rebuttals for or against its continued usage.

For some time, the narrative has been that BTC is bad for the global environment. However, new findings have provided evidence to counter that assertion.

Audit firm KPMG, for instance, has produced figures that discount the notion that BTC is inherently toxic. The report asserts that BTC mining emits fewer greenhouse gasses than the production of electricity that it runs. It also uses only 0.55% of the global power demand.

KPMG’s assertions are gaining currency among the Bitcoin faithful. A growing number of them see BTC playing a significant role in innovating global energy usage. A case in point is X user Kenny’s clapback on another user’s assertions that BTC is toxic.

Uhm, no.

Electricity consumption is not toxic. Electricity consumption has no emissions.

Electricity production CAN be.

If 100% of bitcoin miners would run on vulcano and hydro, it would cause zero emissions. Durable forms of energy are cheaper over the long run, so miners not…

— Kenny (@JimmyBoonen) June 27, 2024

What’s next for BTC?

There’s a consensus that the BTC industry can do more to reduce its perceived harmful effects. That has seen the coin’s proponents adopt such proactive measures as forming the Bitcoin Council to champion sustainable mining.

Other quarters have suggested that BTC follow Ethereum in shifting to a less energy-intensive Proof of Stake consensus mechanism. The only obstacle is BTC purists, who are opposed to such a switch. Meanwhile, BTC enthusiasts are pointing to progress made in mining—better energy-efficient rigs, for example—as evidence of their commitment to protecting the environment.

Cryptopolitan reporting by Nellius Irene

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