In 2021, Bitcoin is expected to use the same amount of energy as Pakistan.

ByFaisal Chughtai | Published date:
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With its increasingly costly and powerful mining equipment, the world's largest cryptocurrency, Bitcoin, is projected to use 91TWh of energy in 2021, equivalent to Pakistan's annual consumption.

Energy usage has been the most recent flashpoint for bitcoin watchdogs, who accuse it of being an energy hog.

The debate about the environmental effect of Bitcoin mining, in particular, has become more vociferous, and rightfully so.

Bitcoin, the largest cryptocurrency by market value, used about 67TWh of power in 2020. It is expected to use almost 91TWh of energy this year, which is nearly equivalent to the energy consumed by Pakistan.

Bitcoin mining, in essence, requires a large amount of energy. To put things into perspective, Satoshi Nakamoto, the pseudonymous creator of Bitcoin, likened Bitcoin mining to the gold mine. According to research, it costs $12,500 to mine one block of Bitcoin.

As the value of the currency rises and more miners with less energy-efficient equipment join the network, both financial and environmental costs increase.

So, although Bitcoin only accounts for 0.3 percent of world energy consumption, it will need ever-more costly and powerful mining equipment, which will undoubtedly cause Bitcoin to use more energy than Pakistan in the future years.

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