Even while Bitcoin mining has seen a considerable increase in energy use over the last several years, the sector still accounts for a relatively tiny portion of the overall worldwide usage, according to a research that was just published by Arcane Research.
At the moment, Bitcoin miners are using around 100 terawatt hours’ worth of power every single year. This amount accounts for around 0.06% of the world’s total energy consumption, which is not even close to being significant.
The video gaming sector uses around 105 TWh of electricity per year, which is only a hair more than what is used by Bitcoin miners. Gold mining, on the other hand, requires a great deal more power to operate, with an annual energy intake that is now over 240 TWh, which is nearly 2.5 times what is required for Bitcoin mining.
Paper manufacturing requires 2,361 TWh of electricity annually, which is 10 times more than gold mining and 24 times more than bitcoin miners’ need. This information is shown in the graphic. The paper contends that the manner in which Bitcoin miners use electricity is distinct from the manner in which these other businesses that need a lot of energy do so.
The fact that these miners are “unique users of energy” may primarily be attributed to five factors. To begin, the cost of running a Bitcoin mining operation is driven about 80% by the cost of energy alone. This indicates that miners have a significant amount of motivation to operate with as little energy as possible, or to relocate to locations where costs are lower.
The second distinction is that mining does not depend on its location in any way. Miners are able to establish their operations pretty much anywhere, and as a result, they are able to make use of energy resources that are not being used by anybody else due to the geographical restrictions that apply to other businesses.