How Much Electricity Does Mining Bitcoin Use Around the World

Mining Bitcoin is a global phenomenon, with operations spread across the world. China is the leading Bitcoin mining country, accounting for over 70% of the world's total mining capacity.

The sheer scale of Chinese mining operations is staggering, with some estimates suggesting that they consume over 2.5 billion kilowatt-hours of electricity per year. To put that into perspective, that's enough electricity to power over 200,000 average US homes.

In contrast, the United States is a distant second, with around 10% of the world's total mining capacity. The country's mining operations consume significantly less electricity, with estimates ranging from 100 million to 200 million kilowatt-hours per year.

Bitcoin's energy requirements are staggering, with estimates suggesting they could power an entire country like Belgium for a year.

The energy consumption of Bitcoin mining is estimated to be around 73 TWh per year, which is roughly the same as the annual energy consumption of the entire country of Belgium.

This massive energy usage is due in part to the fact that Bitcoin mining requires massive amounts of computational power to solve complex mathematical equations, which involves solving for a hash that meets a certain criteria.

The computational power required to mine Bitcoin is so great that it's estimated to be around 120 million times more powerful than the world's most powerful supercomputer, the Summit supercomputer.

The energy consumption of Bitcoin mining is also a major contributor to greenhouse gas emissions, with estimates suggesting it could be as high as 36 million metric tons of CO2 per year, which is roughly the same as the annual emissions of 7.5 million cars.

The energy requirements of Bitcoin mining are so high that they're even starting to affect the global energy market, with some countries experiencing power outages due to the high demand for electricity.

To understand the cost of mining one Bitcoin, researchers studied the electricity usage of 8 different mining machines with varying hash rates. The study used a mining difficulty of 89,471,664,776,971.00000000, which changes every 2,016 blocks mined.

The researchers analyzed the electricity consumption of each machine, with some using as little as 5.36 kW and others using up to 7.283 kW. The average time it took to mine one Bitcoin with each machine ranged from 87,584.70 hours to 126,511.23 hours.

Here are the 8 mining models studied, with their hash rates, power consumption, and hours to mine 1 Bitcoin:

The most profitable countries for Bitcoin mining are a fascinating topic. Iran takes the top spot, where miners pay just $1,324.17 in electricity to produce one Bitcoin.

Iran's low electricity costs make it an attractive destination for miners. Ethiopia ranks second, with a cost of $1,986.26 per Bitcoin.

The cost of electricity varies greatly across the top 10 most profitable countries. In Sudan, Syria, and Cuba, the cost is $3,972.52 per Bitcoin.

Here are the top 10 most profitable countries to mine 1 BTC:

The cost of electricity in these countries can be significantly lower than in other parts of the world.

To understand how this study was conducted, let's take a closer look at the methodology used. The researchers looked at the cost of mining one Bitcoin in 142 countries, using USD per kilowatt-hour (USD/kWh) as the measure.

The study calculated the average time it took to mine one Bitcoin with 8 different mining machines, each with unique hash rates and power consumption. This was done using a mining difficulty of 89,471,664,776,971.00000000, which changes every 2,016 blocks mined.

The researchers considered 8 different mining models, including the MicroBT Whatsminer M63s hydro 390T and the Bitmain Antminer S21 Hydro 335. Each model had its own hash rate, power consumption, and time to mine one Bitcoin.

Here are the 8 mining models the researchers looked at, with their respective hash rates and power consumption:

The researchers then multiplied the average electricity consumption by each country's electricity cost to calculate how much it costs to mine one Bitcoin in each country.

Crypto is a digital or virtual currency that uses cryptography for security and is decentralized, meaning it's not controlled by any government or financial institution.

Computers across the globe compete to solve complex computations to validate transactions and create a public ledger.

This process is called crypto mining, and it's the backbone of many cryptocurrencies and NFTs.

The computer that solves the computation first gets a reward of new coins or tokens, which can be worth a significant amount of money, like 6.2 bitcoins, or about $134,000 at current prices.

Crypto mining contributes to the overall energy usage, making it a significant concern for the environment.

A crypto mining rig is essentially a barebones computer with multiple graphics cards, or GPUs, instead of the single-card standard, and it's designed to do the heavy lifting of completing complex computations.

These rigs usually rely on powerful GPUs from top manufacturers like Nvidia and AMD to handle the calculations, which requires high-wattage power supplies to keep them running.

The popularity of mining has led to a shortage of graphics cards, causing their values to skyrocket.

Crypto mining rigs are built to be efficient and powerful, making them a crucial part of the cryptocurrency mining process.

Crypto mining is a significant contributor to the popularity of cryptocurrency. It's a way for individuals and businesses to earn cryptocurrency by solving complex mathematical problems.

The energy-intensive nature of crypto mining makes it a costly and complex process. A single mining rig can consume 1,000 watts of power or more when it's running.

Crypto mining businesses can have hundreds or even thousands of rigs in one location. This is why mining centers need a lot of cooling, which requires even more electricity.

The potential for high returns on investment is another reason crypto is popular. A mining center in China has a monthly electricity bill of more than $1 million as it mines 750 bitcoins a month.

Crypto mining is a 24/7 operation, with graphics cards working non-stop to solve complex mathematical problems. This constant activity generates a lot of heat, requiring external cooling in larger operations.

The environmental impact of mining bitcoin is a pressing concern. Fossil fuels account for more than 60% of the energy sources in the US, with natural gas and coal being the primary contributors.

Mining rigs consume a lot of energy, which can lead to more fossil fuels being used. Nearby power plants must produce more electricity to compensate, making it harder for states with struggling coal power plants to reduce their carbon footprint.

Electronic waste is another issue, with bitcoin mining's electronic waste being 34 kilotons, comparable to the amount produced by the Netherlands.

China's Sichuan Province has managed to attract crypto miners with its abundance of cheap hydroelectric power, but the country cracked down on bitcoin mining facilities in 2021 due to energy shortages.

Ethereum, the second most popular blockchain, is taking steps to reduce its energy consumption. Its upgrade, Ethereum 2.0, is expected to reduce energy usage by 99.95% by changing the proof-of-work protocol to proof of stake.

Asia's favorable conditions for Bitcoin mining have made it a hub for miners, with over 20 countries offering favorable conditions. Miners across Asia are still seeing high returns on their investments even after the 4th halving.

The cost of mining a single Bitcoin in countries like the UK and Germany is up to 5 times higher than its current value, making mining a losing proposition for many.

Miners are increasingly looking to set up in countries with lower energy costs to stay profitable, causing a shift in where mining operations are located.

Some countries are particularly challenging for Bitcoin miners due to high electricity costs. Ireland is the least profitable country for Bitcoin mining, with an electricity cost of $321,112.30 per Bitcoin.

The high costs in Ireland make it difficult for miners to turn a profit, even with the current price of Bitcoin. This is a stark contrast to other countries where mining is more feasible.

Here are the top 10 least profitable countries to mine 1 BTC, based on their electricity costs:

In some of these countries, the cost to mine one Bitcoin is actually higher than the current price of Bitcoin, making it a losing proposition for miners.

The environmental impact of cryptocurrency mining is a serious issue. Fossil fuels account for more than 60% of the energy sources in the US, with natural gas and coal being the main contributors.

The carbon dioxide produced by fossil fuels is released into the atmosphere, where it absorbs heat from the sun and causes the greenhouse effect. This is a major contributor to climate change.

Mining rigs consume a lot of energy, which raises the likelihood that more fossil fuels will be used. States with struggling coal power plants are trying to cash in by wooing crypto mining companies.

Electronic waste is also a significant problem. Bitcoin mining's electronic waste is 34 kilotons, comparable to the amount produced by the Netherlands.

Not much is being done to address this issue. The 3rd Global Cryptoasset Benchmarking Study found that energy consumption made up only 30% of miners' decisions.

However, access to renewable energy at a low price can attract crypto miners. China's Sichuan Province has the country's second-largest number of miners due to its abundance of cheap hydroelectric power.

Ethereum is working to reduce its energy consumption. Ethereum 2.0 is an upgrade being tested now, which should reduce the amount of energy needed for ethereum mining by 99.95%.

The University of Cambridge found that energy consumption made up only 30% of miners' choices when deciding which coin to mine. China's Sichuan Province is a hotspot for crypto mining due to its abundance of cheap hydroelectric power.

Ethereum, the second most popular blockchain, is working to reduce its energy consumption. Ethereum 2.0 is an upgrade that will change the way miners create blocks for the blockchain.

This new protocol, proof of stake, should reduce energy consumption by 99.95%. Miners will be randomly selected to create blocks, and those not selected will validate those blocks created.

Ethereum 2.0, an upgrade being tested now, will switch to a proof-of-stake protocol, reducing energy consumption by 99.95%. This is a significant change from the current proof-of-work protocol, which consumes a lot of energy.

Many other cryptocurrencies use the proof-of-stake protocol, resulting in a drop in power consumption. There are over 19,000 cryptocurrencies, and some, like Cardano, use their own proof-of-stake protocol, consuming only 6 gigawatt-hours in 2021.

Chia is another energy-efficient cryptocurrency that uses a proof-of-space protocol, requiring farmers to allocate space on a computer's hard drive, called "plots", that will be called upon by the blockchain based on certain factors.

China's Sichuan Province has an abundance of cheap hydroelectric power, attracting many crypto miners, including those who mine ethereum. However, the Chinese government cracked down on bitcoin mining facilities in late 2021 due to energy shortages.

AI and Bitcoin are two vastly different technologies with distinct energy consumption profiles.

AI requires a significant amount of energy to power its complex algorithms and data processing capabilities.

In contrast, Bitcoin's energy consumption is mainly used for mining, which involves solving complex mathematical equations to validate transactions.

Bitcoin's energy consumption is estimated to be around 73 TWh per year, which is roughly equivalent to the energy consumption of a small country.

This is a significant increase from 2019 when Bitcoin's energy consumption was estimated to be around 30 TWh per year.