![[Researh] In 2017 bitcoin network consumed 5 TWh of energy, in 2018 – 29 TWh, in 2019 – 43 TWh. Banking industry consumes 74 TWh per year.](https://b.thumbs.redditmedia.com/MznS4nb66A3dlesZIa6afsH8EiCC12gxDyEiR8MqAPs.jpg "[Researh] In 2017 bitcoin network consumed 5 TWh of energy, in 2018 – 29 TWh, in 2019 – 43 TWh. Banking industry consumes 74 TWh per year.")
Electricity consumed by bitcoin network has been constantly and noticeably increasing. During the past years the consumption reached such big a scale, that it can be compared to electricity consumption of some countries, according to BlockchainAnalytics.pro research.
The world’s first cryptocurrency is steadily becoming more popular and expensive every year. This motivates more individuals and companies to enter the mining business to earn a bitcoin share.
At the same time, mining equipment efficiency is constantly improving, and with time less electricity is required to produce the same hashrate. This factor allows to slow down the increasing demand for electricity.
For example, in 2016 Bitmain, world’s largest manufacturer of mining equipment, launched the legendary Antminer S9, which consumed 100 watts to produce one terahash per second, or 100 W/TH/s. The best modification of Antminer S15, released in 2018, consumed 57 W/TH/s. Currently, the most efficient Antminer S17 consumes only 40 W/TH/s.
https://preview.redd.it/gh343l3p09j41.png?width=930&format=png&auto=webp&s=e350c1e7832e37c1e3c3aeac974428cca7f0f874
It is assumed that the market competition compels manufacturers to keep up with each other in developing more efficient hardware. If some manufacturer brings next-generation chips to market, other manufacturers start to produce chips with the same characteristics at about the same time.
On the other hand, new miners are joining the network, thus increasing the hashrate. So the demand for electricity continues to grow. Also, it can be noticed later that the electricity consumption chart is similar to that of hashrate chart.
https://preview.redd.it/3k32ci6q09j41.png?width=930&format=png&auto=webp&s=e70f600419bcbc9e7e82506b5f12bf4da6f00584
The sum of incremental volumes represents cumulative amount of electricity consumed by bitcoin network. The metric is expressed in terawatt-hours (TWh). To get annualized volume in terawatt-hours we multiply the consumption by 24 hours and 365 days.
A 100-day moving average was applied to hashrate to make the final result less dependent on the short-term hashrate fluctuations.
Assumptions, used in this study, are very conservative. It means that the results are in the lower limit of the range of possible volumes, and the actual electricity consumption can be higher.
A detailed explanation and interactive charts are provided here: https://www.blockchainanalytics.pro/btc/electricity-consumption/
https://preview.redd.it/jol3703r09j41.png?width=929&format=png&auto=webp&s=252d4d67ff6882bb32ad63238537a41305719f05
Portugal consumes 49 TWh per year, Romania – 50 TWh, Czech Republic – 59 TWh.
Some more numbers for comparison:
According to conservative estimates, the bitcoin network will consume more than 70 TWh in 2020. This is on a par with Chile, a country with 18 million population.
Some information on world population:
So, we can assume, that banking industry consumes ~74 TWh per year
submitted by answer__42 to btc [link] [comments] The world’s first cryptocurrency is steadily becoming more popular and expensive every year. This motivates more individuals and companies to enter the mining business to earn a bitcoin share.
More miners, more efficient equipment
To validate a block of transactions and receive a reward, miners compete with each other by solving a deliberately complicated mathematical task, or puzzle. Those miners who own more computing power (hashrate) have more chances to win the competition. This incentivizes miners to buy more powerful equipment that consumes more electricity.At the same time, mining equipment efficiency is constantly improving, and with time less electricity is required to produce the same hashrate. This factor allows to slow down the increasing demand for electricity.
For example, in 2016 Bitmain, world’s largest manufacturer of mining equipment, launched the legendary Antminer S9, which consumed 100 watts to produce one terahash per second, or 100 W/TH/s. The best modification of Antminer S15, released in 2018, consumed 57 W/TH/s. Currently, the most efficient Antminer S17 consumes only 40 W/TH/s.
https://preview.redd.it/gh343l3p09j41.png?width=930&format=png&auto=webp&s=e350c1e7832e37c1e3c3aeac974428cca7f0f874
It is assumed that the market competition compels manufacturers to keep up with each other in developing more efficient hardware. If some manufacturer brings next-generation chips to market, other manufacturers start to produce chips with the same characteristics at about the same time.
On the other hand, new miners are joining the network, thus increasing the hashrate. So the demand for electricity continues to grow. Also, it can be noticed later that the electricity consumption chart is similar to that of hashrate chart.
https://preview.redd.it/3k32ci6q09j41.png?width=930&format=png&auto=webp&s=e70f600419bcbc9e7e82506b5f12bf4da6f00584
Calculations
The incremental volume of electricity consumption is calculated by multiplying newly added hashrate by the best mining efficiency available at that moment.The sum of incremental volumes represents cumulative amount of electricity consumed by bitcoin network. The metric is expressed in terawatt-hours (TWh). To get annualized volume in terawatt-hours we multiply the consumption by 24 hours and 365 days.
A 100-day moving average was applied to hashrate to make the final result less dependent on the short-term hashrate fluctuations.
Assumptions, used in this study, are very conservative. It means that the results are in the lower limit of the range of possible volumes, and the actual electricity consumption can be higher.
A detailed explanation and interactive charts are provided here: https://www.blockchainanalytics.pro/btc/electricity-consumption/
https://preview.redd.it/jol3703r09j41.png?width=929&format=png&auto=webp&s=252d4d67ff6882bb32ad63238537a41305719f05
Results
Currently, annualized electricity consumption in bitcoin network is 57 TWh. To help readers get an idea of how much electricity the bitcoin network consumes, a comparison with some countries is provided alongside.Portugal consumes 49 TWh per year, Romania – 50 TWh, Czech Republic – 59 TWh.
Some more numbers for comparison:
- In 2017 the bitcoin network consumed almost 5 TWh. For example, Jamaica consumes slightly more than 3 TWh per year
- In 2018 the bitcoin network consumed almost 29 TWh. It’s just about Nigeria’s yearly consumption
- In 2019 the bitcoin network consumed 43 TWh. Slightly more than New Zealand’s annual needs
According to conservative estimates, the bitcoin network will consume more than 70 TWh in 2020. This is on a par with Chile, a country with 18 million population.
More thoughts (estimations of how much energy banking industry consumes)
Some information from official reports:- HSBC consumed 1092 GWh in 2018. The bank has 40 million customers. It means that HSBC spends ~27 kWh per customer per year.
- Banco Santander consumed 1077 GWh in 2018. The bank has 144 million customers. It means that Banco Santander spends ~8 kWh per customer per year.
- MUFG consumed 381 GWh in 2018. The bank has 35 million customers. It means that MUFG spends ~11 kWh per customer per year.
- Lloyds Banking Group consumed 582 GWh in 2018. The bank has 30 million customers. It means that Lloyds Banking Group spends ~19 kWh per customer per year.
- Wells Fargo consumed 2315 GWh in 2018. The bank has 70 million customers. It means that Wells Fargo spends ~33 kWh per customer per year.
Some information on world population:
- 69% of adults around the world have a banking account (source)
- 70% of the world population are adults (source)
- World population is 7.7 billion (source)
So, we can assume, that banking industry consumes ~74 TWh per year
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