Bitcoin Mining has been considered as a troublemaker for the environment by many as it consumes the humongous amount of energy. Much has been spoken and written about it because in absolute terms it consumes a hell lot of energy. But if Vladimir Jelisavcic’s analysis on Long Hash is to be believed Bitcoin mining uses far less energy compared to Gold Mining.
Bitcoin mining energy usage: A top-down and bottom-up approach
Vladimir Jelisavcic, to estimate the energy usage for Bitcoin uses two rough methods for estimating power consumption: the “top-down” approach and the “bottom-up” approach as Bitcoin is a decentralized network with millions of mining units and there is no structure for reporting power consumption for mining till now.
In the “Top-Down” approach, the block rewards are used as a premise to estimate the consumption of power. The report says
John Lilic, member of the Ethereum development studio ConsesnSys, chimed in on the difference in the energy consumption between the two aforementioned assets. “The real question is whether the gross energy inefficiency costs in crypto is worth the benefits like custody over assets. My contention is Yes! It is worth it but only if our industry prioritizes & continues to work towards energy efficiency gains like Proof of Stake,” he stated.
While the analysis considers the use of traditional non-renewable sources of energy, one shouldn’t forget that there are efforts being made for renewable sources of energy to mine bitcoin which will make mining bitcoins eco-friendlier.
Is Mining Bitcoin less destructive to the environment than mining gold? Do let us know your views on the same.