According to new research from the New York Digital Investment Group (NYDIG), Bitcoin’s energy consumption will remain below 0.5 percent of total global consumption over the next decade.
NYDIG found that Bitcoin’s energy consumption and carbon emissions will not skyrocket in the next few years, in a recently published study.
The research, written by Castle Island Ventures partner Nic Carter and NYDIG founder Ross Stevens, looked at how the carbon emissions of the Bitcoin network might change in the future based on fluctuations in price, mining difficulty and energy consumption.
According to the research, Bitcoin’s carbon emissions will continue to account for a small fraction of global carbon emissions, even if the price of BTC skyrockets by 2030:
“Even in the scenario where Bitcoin reaches $ 10 trillion by 2030, BTC’s carbon emissions will only account for 0.9 percent of total emissions. In this scenario, BTC’s energy consumption is expected to account for 0.4 percent of global consumption. “
The research attempts to predict the growth of Bitcoin mining using data from 2020. The researchers calculated the historical electricity consumption of Bitcoin miners based on the hash rate of the network and the efficiency of the machine.
Carter and Stevens found that Bitcoin consumes 62 TWh of electricity and emits 33 million tons of carbon dioxide in 2020, accounting for 0.04 percent of global energy consumption and 0.1 percent of global energy emissions. carbon.
The researchers concluded that carbon emissions caused by Bitcoin mining were negligible globally in 2020.
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BTC mining currently accounts for 0.45 percent of global electricity consumption, with an annual electricity consumption of 101 TWh. According to the University of Cambridge, the Bitcoin network consumes more energy than the entire Philippines.
On the other hand, according to the University of Cambridge, the Bitcoin network consumes less energy than all refrigerators in the United States, and only 4.6 percent of the total energy consumed by household air conditioners worldwide.
The researchers added that the possibility of Bitcoin mining decarbonizing in the future is promising:
“The intensity of Bitcoin’s carbon emissions will decrease over time as renewable energy sources continue to develop and countries decarbonize their power grids.”