1. How much energy does crypto use?
Bitcoin’s estimated power use soared from an annual rate of 14 terawatt-hours in 2017 to 105 terawatt-hours in 2021 — more than the entire domestic consumption of Belgium — according to the Cambridge Centre for Alternative Finance, which keeps a running estimate. It expects that demand declined in 2022, when a plunge in the value of crypto assets pushed some miners out of business. However, research platform Digiconomist projected that the pollution created by generating electricity for crypto would still amount to around 64 million metric tons of carbon dioxide in 2022, more than the annual global emissions avoided through the increased use of electric vehicles.
2. Why does crypto need so much energy?
To order transactions on a blockchain, Bitcoin and many other networks use an algorithmic process called “hashing.” This produces a number that miners compete to guess in a brute-force effort that can involve trillions of tries. The first to succeed is rewarded with newly issued coins in a process known as “proof of work.” As more miners enter, the guessing is made more difficult, forcing them to invest in ever-more-powerful machines. Many miners now have thousands of computers toiling away in cavernous warehouses.
3. How are miners trying to cut their carbon footprint?
Some have set up shop in…
