The cryptocurrency crisis and the fall in the price of bitcoin (BTC) continue. The main cryptocurrency is struggling to keep its head above water. He is struggling to stay over $ 20,000. This difficult situation manifests itself in many changes within the cryptocurrency market and ecosystem. Among these, the fall in BTC energy consumption has hit. On June 26, 2022, Bitcoin consumption amounted to 133.27 TWh compared to 204.5 TWh during the beginning of 2022.
Big fall in energy consumption for bitcoin (BTC)
This is a great goal. According to a Digiconomist report, BTC’s energy consumption fell sharply as early as June 15, 2022. Losing nearly 50 TWh that day, bitcoin slowly fell back to 133 TWh of energy consumption. This is how it returned to the same consumption as last year. A big blow, a real step backwards for the BTC. During the same period, bitcoin had just dropped from about $ 30,000 plus or minus 20,000.
an mining badly hit bitcoin (BTC)
Overall, it’s primarily on the mining of bitcoin impacted by market correction. In fact, miners continue to experience reduced profitability. Especially because BTC is struggling to keep its price above $ 20,000. Which led miners to scale down their operations for minimal profits. The miners’ strategy has also changed. Moving away from a storage approach, these turned into liquidation. In fact, miners have accumulated a 100% sale rate of their BTC over the month of May. Rate was more like 20% in April.
Huge energy consumption
Despite this fall, Argentina’s annual electricity consumption equates to 133TWh. One traditional BTC transaction that requires the same amount of energy as a typical US house would consume in about two months. When you think about it, the crushing process consumes one unit of Bitcoin, which fails to piss off environmentalists, consumes more than 90 terawatt hours of electricity each year, which is higher than the average annual electricity consumption from Finland.
Bitcoin (BTC) remains the most energy-intensive cryptocurrency
As the price of cryptocurrencies has declined (BTC reached an all-time high of $ 69,000 in November 2021 and is currently trading near $ 21,000), interest in mining is also declining. However, the Bitcoin network is estimated to be responsible for about 114 million tons of carbon dioxide per year. While Ethereum mining generates 48.7 million tons of carbon dioxide emissions, the same amount as Bulgaria.
While bitcoin (BTC) energy consumption has fallen sharply, it is still substantial. It is even the first among the energy consumption of cryptocurrencies. Much later at Ethereum, more ecological. However, we cannot help but notice that this fall in consumption coincides with the fall in the price of BTC. Another symptom to record for the current crisis. Overcoming a symptom that may be enjoyed by some people and others.
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Gregory Morat
A student passionate about entrepreneurship and interested in the technologies behind cryptos! Yes, I’m sure the two are closely linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.
