London Daily

Focus on the big picture.
Saturday, Jul 05, 2025

Bitcoin has already used more energy this year than during all of 2020

Bitcoin has already used more energy this year than during all of 2020

Bitcoin is set to use 91TWh of energy by the end of 2021, which is as much electricity as Pakistan uses in a year.

Bitcoin has already used more power so far this year than it did in all of 2020, a new study has suggested, as the debate on the impact of cryptocurrency mining on the environment heats up.

Bitcoin is set to use 91TWh of energy by the end of this year, according to a Bloomberg report, which noted this is as much energy as Pakistan. Last year, Bitcoin was estimated to have consumed about 67TWh of electricity.

While tracking how much energy Bitcoin mining uses is difficult, the trend is clear. The Cambridge Bitcoin Electricity Consumption Index estimates that Bitcoin will consume 95.68 TW/h by the end of the year, which is about the same as the power consumption of the Philippines.

Why does Bitcoin use so much energy?


Bitcoin uses a system called "proof of work", the mechanism is used to confirm transactions and add new blocks to the chain. Its decentralised system requires a global network of computers to run at the same time when a transaction takes place. This is why it uses so much energy, as it is designed to encourage increased computing effort.

Bitcoin could switch to the less energy-consuming "Proof of Stake" mechanism, which randomly allocates coins to users who put up their own tokens as collateral.

The Bloomberg report said as the price of Bitcoin increases, more miners with less energy-efficient machines are joining the network, which then drives up energy use.

The report said it was "essential to improve the efficiency of crypto-mining and move to low-carbon energy sources for electricity".

Electronic waste


But it's not just the running of Bitcoin mining that is costing the environment. The computer equipment used for mining typically only lasts for one and a half years. It can not then thrown out afterwards because the equipment can only be used for mining.

Science Direct found that as a result, one transaction on the Bitcoin network produces 272 grams of electronic waste.

Electronic equipment used in crypto mining has a short shelf life.


When governments and Elon Musk get involved


One of the most prominent figures to add to the crypto environmental debate is the Tesla chief executive officer Elon Musk.

Earlier this year he said the electric car company would accept Bitcoin as payment, but environmentalists later convinced Musk to backtrack on his decision.

Musk subsequently announced the company would not accept crypto payments for Tesla vehicles again until at least 50 per cent of mining operations using green energy. But this has not yet happened.

Cryptocurrency experts have previously told Euronews Next that crypto miners have no incentive to make greener choices.

Governments are also weighing in on the debate. China and Iran temporarily halted Bitcoin mining due to the massive energy use that was causing power cuts in some areas.

In the United States, Senator Elizabeth Warren butted heads with two cryptocurrency CEOs.

Earlier this month she tweeted a New York Times article on the environmental impact of cryptos and wrote: “Bitcoin mining consumes roughly the same amount of electricity as Washington state—putting pressure on our power grids and worsening the #ClimateCrisis. We need to protect our planet and crackdown on environmentally wasteful crypto mining practices.”


In response, CEO of MicroStrategy, Michael Saylor, tweeted: "#Bitcoin mining converts wasted & stranded energy into digital energy, the natural successor to chemical & electrical energy. It can be managed by any computer, transferred anywhere at the speed of light, and lasts forever, thereby improving our climate, economy & power grid".

Meanwhile, FTX CEO Sam Bankman-Fried, responded to Warren in saying Bitcoin mining could be improved but that it is "in line with its economic impact".

Newsletter

Related Articles

0:00
0:00
Close
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
×