A newly invented online tool from the University of Cambridge shows that Bitcoin uses much energy as the whole of Switzerland, according to a report by BBC.
The tool, which reportedly compares cryptocurrency network’s energy usage with other entities, estimated that Bitcoin is using around seven gigawatts of electricity, which equals to 0.21% of the world’s supply.
The power consumed in crypto mining equates to roughly to the same consumption as the whole of Switzerland in a year. That is as much power that can be generated by seven Dungeness nuclear power plants at once.
“We want to use comparisons that set the narrative,” said the tool’s co-creator Michel Rauchs, from the university.
The tool models the economic lifetime of the world’s Bitcoin miners, and calculates based on the average electricity price per kilowatt hour ($0.05, £0.04) and the energy demands of the Bitcoin network.
Usually, computers known as mining machines are connected to the cryptocurrency network, during Bitcoin mining, with the task to verify transactions on Bitcoin that involves solving puzzles.
To earn much Bitcoin as a reward, people often connect large numbers of miners to the cryptocurrency network – even entire warehouses full of them. This requires a lot of electricity because the miners are constantly working.
However, an expert argued that the only thing that matters in mining is the carbon footprint of Bitcoin’s energy consumption, that is, the emissions associated with the electricity resources used to power the crypto-currency.
This Bitcoin network has an energy consumption problem, as it varies from different locations, depending on energy supplies.
While Bitcoin Mining with fossil energy poses very significant harm the planet, a new study by CoinShares, however, has proven that contrary to public opinion 74% of the Bitcoin mining activity is now done with renewable energy with less risk.
Meanwhile, Coinfomania reported that Missoula County Commissioners board mandated the use of Renewable Energy Practices for on cryptocurrency mining activities.
