Bitcoin uses more energy than Amazon, Google, Microsoft, Facebook, and Apple combined

josh jackman
Written By
Published on 12 February 2021

Bitcoin uses more energy than Amazon, Apple, Facebook, Google, and Microsoft combined.

The cryptocurrency is responsible for 121.05 TWh (terawatt-hours) per year – nearly three times as much as these tech behemoths, which use 45 TWh between them.

Data from Cambridge University’s Bitcoin Electricity Consumption Index places Bitcoin’s energy usage above countries like the United Arab Emirates, the Netherlands, and Pakistan – the last of which powers the lives of more than 216 million people.

If it were a country, Bitcoin would rank 31st for energy consumption.

Bitcoin is a digital currency, with coins that have to be mined through a two-step process which uses a tremendous amount of energy.

First, you must verify around one megabyte of transactions, which helps to stop fraud within the system. This makes you eligible to receive bitcoins – a small cut for each transaction you verify.

The second step is that your extremely powerful computer – or more likely, group of computers – must crack a numerical problem.

This is known as hashing, and those who do it are known as hashers. You can only be successful with luck and enormous electricity usage, as you just have to leave your computers to get on with solving the problem.

It’s called mining because there is a finite amount of bitcoins, just like oil or any other natural resource. Since 2009, when the currency was established, 18.5 million of the 21 million bitcoins that exist have been mined.

The world uses a great deal of energy, consuming a total of 23,398 TWh per year, of which Bitcoin consumes 0.5%.

So why are we highlighting Bitcoin’s usage? After all, China uses 31% of the world’s energy for 18% of the planet’s population, while the US consumes 17% despite being home to just 4.3% of the humans on Earth.

Well, because Bitcoin isn’t a country.

A country is responsible for powering the everyday activities of its citizens – it lights your homes, streets, classrooms, and offices; it powers crucial and ubiquitous electronic devices from smartphones and fridges to medical devices; in short, it makes modern life possible.

And tech giants like Amazon and Apple provide jobs, goods, and services, while Bitcoin uses astronomical levels of energy to produce a type of currency that doesn’t make the world better in any tangible way.

bitcoin miner with their computing rig

Cambridge University’s Global Cryptoasset Benchmarking Study, released in September 2020 states that “the share of renewables in hashers’ total energy consumption remains at 39%.”

This proportion of renewable energy is almost identical to the UK, where renewable energy made up 40.2% of electricity generated in 2020.

It also means that 61% of this enterprise, which seemingly contributes nothing to overall global prosperity, is powered by fossil fuels.

And while countries like the United Arab Emirates, the Netherlands, and the Philippines – as well as companies like Amazon and Microsoft – have all taken steps to increase the amount of renewable energy they use, Bitcoin won’t, because it can’t.

The Guardian’s technology editor Alex Hern has explained that “Apple, Microsoft, Amazon, can all commit to carbon neutrality, or even carbon negative operations.

“But the nature of a decentralised proof of work system is that miners can always use whatever source of energy they want, and it’s impossible to force, or even verify,

[that it’s]

clean.”

The UK is barely affected as things stand. The country’s share of global bitcoin mining is just 0.1%, as of April 2020.

And this figure is unlikely to rise any time soon, as the Financial Conduct Authority cracked down on unlicensed providers of cryptoassets – including Bitcoin – in January 2021.

The independent regulatory body stated that from 10 January, “all UK cryptoasset firms must be registered with the FCA under regulations to tackle money laundering.

“Operating without a registration is a criminal offence.”

Written by

josh jackman

Josh has written about and reported on eco-friendly home improvements and climate change for the past four years.

His data-driven work has featured on the front page of the Financial Times and in publications including The Independent, Telegraph, Times, Sun, Daily Express, and Fox News, earned him the position of resident expert in BT's smart home tech initiative, and been referenced in official United Nations and World Health Organisation documents.

He’s also been interviewed on BBC One's Rip-Off Britain, BBC Radio 4, and BBC Radio 5 Live as an expert on everything from renewable energy to government policy and space travel's carbon footprint, and regularly attends Grand Designs Live as a Green Living Expert, giving bespoke advice to members of the public about heat pumps and solar panels.

Josh has also used the journalistic skills he developed at The Jewish Chronicle and PinkNews to investigate and analyse every green government grant in existence, and examine the impact on the climate of cryptocurrency, Glastonbury Festival, and the World Cup.

You can get in touch with Josh via email.

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