Bitcoin Mining Consumes Less Energy Than Gaming, Reveals Report
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The data shows that the Bitcoin mining industry consumes slightly less energy overall than the video gaming sector.
Bitcoin mining energy consumption is currently 100 TWh per year
According to a recent report by Arcane Research, BTC mining energy consumption has grown significantly in recent years, but the industry still accounts for a very small portion of total global energy.
Currently, Bitcoin miners use about 100 TWh of electricity per year. This figure is about 0.06% of the world’s total energy demand, which is quite insignificant.
Here’s a chart showing how BTC mining compares to some of the other energy-intensive industries on Earth:
The industry's energy demands are lower than all these sectors | Source: Arcane Research's "How Bitcoin Mining Can Transform the Energy Industry"
As you can see from the chart above, the video game industry consumes around 105 TWh per year, just slightly more than what BTC miners use.
Gold mining, on the other hand, consumes much more electricity, as its annual energy consumption is currently around 240 TWh, which is almost 2.5 times the BTC mining requirement.
The chart also has data on paper production, which requires 2,361 TWh per year, 10 times that of gold mines and 24 times that of BTC miners.
The report also claims that the way BTC miners consume electricity differs from other energy-intensive industries.
BTC Miners are unique electricity consumers
There are five main things that make these miners “unique energy consumers”. First of all, about 80% of the operating cost of mining BTC is electricity alone.
This means that miners have a lot of incentive to mine as little energy as possible or move to areas where prices are lower.
Another difference is that mining is location agnostic. Miners can set up facilities almost anywhere and thus tap into energy resources that no one else is using due to location restrictions in other industries.
Third, Bitcoin miners can turn their machines on or off in an instant. Not only that, they can even adjust their consumption watt by watt. The report notes that this feature makes mining highly suitable to act as a demand-responsive tool, which could help improve the strength of power grids.
The fourth exceptional aspect of BTC mining is modularity. Individual AISC machines can be combined in any number, allowing miners to expand their facilities according to the exact amount of energy available. This suggests that miners can utilize 100% of the extra energy that comes from power projects.
Finally, there is the portability of mining equipment. Bitcoin miners can easily transport their machines to other locations because of the portable AISC settings.
At the time of writing, Bitcoin is hovering around $19.8,000, down 2% from last week.
BTC has gone down over the past day | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Arcane Research