• According to a report by technology platform Digiconomist, Bitcoin mining consumed more electricity than the entire country of Sweden in 2022.
• Data shows that 93 million transactions on the Bitcoin network last year averaged 1,738 Kilo Watt Hours (KWH) of electricity per transaction, equivalent to powering a U.S. household for two months.
• Bitcoin mining in 2021 emitted up to 969 kilograms of CO2 per transaction, the same as the carbon footprint of a one-way flight from New York to Sydney.
According to a recent report from technology platform Digiconomist, the world’s Bitcoin mining activities consumed a staggering amount of electricity in 2022. In total, the power consumption totaled 161 Terra Watt Hours (TWh), which is more than the entire nation of Sweden consumed in a single year.
The report revealed that there were almost 93 million transactions on the Bitcoin network last year, with each one of them averaging 1,738 Kilo Watt Hours (KWH) of electrical energy. This amount of energy is enough to power an average household in the U.S. for two months. Although the number of transactions is a drop from what was recorded last year, Bitcoin’s share of global electricity consumption incidentally went up to 0.64%.
When it comes to the environmental impact of Bitcoin mining, the report stated that a single transaction in 2021 emitted up to 969 kilograms of CO2. This amount is equivalent to the carbon footprint per passenger of a one-way flight from New York to Sydney. Digiconomist further noted that the total CO2 emissions from Bitcoin mining in 2021 alone negated the entire global net savings from electric vehicles.
This report serves as a reminder of the need to shift away from energy-intensive methods of mining and towards more sustainable solutions. To achieve this, the Bitcoin mining industry must invest in renewable and clean energy sources, and find ways to reduce the amount of energy consumed per transaction.
Ultimately, while Bitcoin mining has the potential to bring tremendous benefits to the financial industry, it will only be possible if miners can find a way to reduce their energy consumption and make the process more efficient.