The high power consumption of Bitcoins is inherent in the system and will only decline when the rate falls again, according to the scientists in a BBC report. According to calculations by the Cambridge Center for Alternative Finance, if the Bitcoin system were a state, it is among the 30 largest electricity-consuming countries.
The author David Gerard sees the power consumption of the Bitcoin system continue to rise, and the associated CO2 emissions from the cryptocurrency. “It is very bad that all this energy is literally wasted in a lottery.” The latest price rally was triggered by an announcement by the electric car maker Tesla that it would invest in Bitcoin.
Tesla received $ 1.5 billion in environmental grants in 2020, which taxpayers financed for the US group. “And they spend $ 1.5 billion on Bitcoin, most of which is generated using electricity from coal-fired power plants. The se subsidies have to be checked, ”Gerard demands.
For comparison: According to E-Control, around 63.7 TWh of electricity were supplied to customers in Austria in the corona crisis year 2020 (minus 3.3 percent compared to 2019 and around the level of 2009) – around 10 TWh less than the total domestic electricity consumption, which was 73.5 TWh. This difference of 10 TWh was necessary for the system of pumped storage, i.e. the pumping of water into storage systems, as well as to cover network losses and to draw power plants from the network, e.g. to start up caloric systems. An average Austrian household consumes around 4,400 kilowatt hours of electrical energy per year.
The rally in most cryptocurrencies continued on Saturday. The Bitcoin rate rose to around $ 57,500 at lunchtime before it crumbled a little. Most recently, the best-known and most important cryptocurrency on the Bitstamp trading platform cost $ 56,500, around $ 1,000 less, but was still slightly above Friday’s level. At the end of the week, Bitcoin was worth more than $ 55,000 for the first time, cracking the $ 1 trillion mark in terms of total market capitalization.
As a result of the soaring that has lasted for weeks and months, the rates of many other digital currencies such as Ethereum, Binance Coin or Polkadot are also increasing. For this reason, the share of Bitcoin in the overall market for cryptocurrencies has recently decreased somewhat despite the massive price gains. According to a list of the side, this was last only a little more than 60 percent, after it had been more than 70 percent some time ago.