Bitcoin ($BTC) Network Set to Consume as much Energy as Pakistan in 2021: Bloomberg
Bitcoin ($BTC) price continued to slump further in the second week of September and currently trading under $45K.
The top cryptocurrency’s bullish run in August is facing a big hurdle in September, but what could cause more trouble for the top cryptocurrency is the recent energy consumption report of the network. A recent report from Bloomberg highlighted that BTC has surpassed the energy consumption levels of 2020 by the third quarter of 2021 itself.
The 2020 Bitcoin network consumption was estimated to be about 67TWh of electricity, while it has already consumed more than that in 2021, the top cryptocurrency is estimated to consume more than 91TWh, which is equivalent to the energy consumed by Pakistan.
The report highlighted that the use of less efficient mining machines due to an increased price of BTC has been a great cause for driving up the energy consumption of the BTC network.
The above chart shows a significant spike in the Bitcoin Energy consumption in 2021, which could be attributed to the bull run and an increased trader activity because of that. However, it is also important to note that the energy supply on the BTC network fell drastically during the Chinese crackdown and currently getting back to the pre-crackdown levels.
Another Bitcoin Energy FUD on the Cards?
The Bloomberg report might trigger another Bitcoin Energy FUD that hit its peak in May this year. The top cryptocurrency’s energy consumption has been a topic of debate for years now, but what makes it murkier is the half-truths and presenting only one aspect of the story. While there is no denying that the Bitcoin network consumes comparatively much more energy but that energy is in turn used to make the network decentralized and secure.
When compared to mainstream financial services, the carbon footprint, and the energy consumption is very low. While major companies have started to venture into clean and green BTC mining in 2021, the impact of the same could be visible in the coming years.