Study Finds Bitcoin Energy Consumption Off the Charts

Written by:
Published on:

An alarming new study has discovered that bitcoin uses up an astonishing amount of energy and it is only getting worse.

From Gizmodo:

New research suggests the entire bitcoin network could consume as much as 7.7 gigawatts of electricity by the end of this year—enough to power a country the size of Austria.

The study, featured in the science journal Joule, also revealed that bitcoin could use half a percent of the world’s electric energy.

“With the Bitcoin network processing just 200,000 transactions per day, this means that the average electricity consumed per transaction equals at least 300 kWh, and could exceed 900 kWh per transaction by the end of 2018,” writes Alex de Vries, blockchain and author of the research paper, “Bitcoin has a big problem, and it is growing fast.”

Gizmodo notes that bitcoin requires numerous computers in which to work in order to time-stamp transactions along the blockchain and prevent duplication.

“The main problem is that the energy consumption primarily relates to how agreement on the underlying blockchain is reached,” de Vries told Gizmodo. “Mining makes it a big competitive lottery where the winner—every 10 minutes—gets to create the next block for the blockchain. The built-in reward for this process is fixed, so it motivates participants to constantly add new machines to the network to get a bigger slice of the pie—the more computational power the more you win.”

The demand for electricity increases as bitcoin mining becomes more popular.

“Mining power is high and getting higher, thanks to a computational arms race, Roberto Frota Decourt, a cryptocurrency expert at the Unisinos Business School in Brazil who wasn’t involved in the new study, told Gizmodo. “The required number of zeros at the beginning of a hash is tweaked biweekly to adjust the difficulty of creating a block—and more zeros means more difficulty. The bitcoin algorithm adds these zeros in order to keep the rate at which blocks are added constant, at one new block every 10 minutes. The idea is to compensate for the mining hardware becoming more and more powerful.”

- Aaron Goldstein,

- Aaron Goldstein,


Business/Financial News

Sports Book Near Pittsburgh

PA soon to offer online sports betting, but probably not for the 2018 Football season, though Pittsburgh area residents will have the luxury to bet sports at nearby Mountaineer Casino in West Virginia.

Can I Really Run My Own Sportsbook From the US?

With the US Supreme Court ruling against decades long sports betting prohibition, everybody with computer access and a pulse wants to start taking bets and today's Pay Per Head sportsbook solutions make the process easier than ever.

Agents Have A New Payment Solution to Connect & Collect Cryptocurrency

There’s a new way for bookie agents to connect and collect with their players. Cryptocurrency is already widely-popular with agents and players in the sports betting industry. Now, collecting and payouts just got simplified—Get the details here!

7 Easy Steps To Creating A Profitable Sportsbook Business

7 Easy Steps To Creating A Profitable Sportsbook Business

Want to to build a sustainable sportsbook business? Make the most revenue possible? Be your own boss? Good. All you need are these 7 steps to start to really build a profitable sportsbook business. Get the details here.

Betting With A Bookie

If youíre a person that likes to bet on sports there are a few options that you can utilize in order to make wagers, such as going to an actually Casino, finding an online sportsbook, or finding a local bookie.