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Bitcoin’s Energy Consumption Continues to Skyrocket
Concerns over Bitcoin’s environmental impact are nothing new. Crypto sceptics have long criticised miners’ massive electrical usage, but since Bitcoin roared to record highs and re-entered the spotlight, electrical consumption levels have risen to an astronomical amount. Simply put, increasing Bitcoin values increase the profitability of mining, incentivizing mining pools to extend their activities.
According to the University of Cambridge’s Bitcoin Electricity Demand Index, Bitcoin mines worldwide consume 138.7 terawatts of electricity — about 0.5 percent of global power consumption. After March of last year, Bitcoin prices have risen by nearly 900 percent, while its projected annualised usage has increased by 200 percent. Bitcoin’s annual electricity demand now approaches that of developed nations such as Sweden, Switzerland, and Finland, with costs recently peaking at $61,500.
The Crypto Mining Industry May Face Consequences for Further Inaction
Argo Blockchain and DMG will shift their mining activities to hydroelectric technology, which is a clean, green energy source. In a tweet, Argo Blockchain CEO emphasised the importance of the mining community working together to find a long-term solution. “We expect that other Bitcoin mining firms will join in our footsteps to show greater climate consciousness,” he added.