30.04.2025
Eugene Komchuk
Eugene Komchuk
Editor at Traders Union
30.04.2025

Resources in exchange for freedom: How much electricity does Bitcoin consume?

Resources in exchange for freedom: How much electricity does Bitcoin consume? Pros and cons of Bitcoin's high energy consumption

​Bitcoin's energy consumption continues to grow steadily. In 2021, the leading digital asset used 89 TWh of electricity. Today, this figure has risen to 138 TWh. But is this something to worry about?

According to the Cambridge Centre for Alternative Finance (CCAF), Bitcoin mining currently consumes around 138 TWh of electricity, which amounts to approximately 0.54% of global energy consumption.

The report notes that 52.4% of the electricity used comes from sustainable sources, including hydropower (23.4%), wind power (15.4%), nuclear energy (9.8%), solar power (3.2%), and other renewable sources (0.5%). The remainder is fossil fuels, with natural gas dominating at 38.2%.

To understand how Bitcoin’s energy consumption has changed, it's essential to look at past reports from the organization.

Early reports from CCAF

The CCAF first estimated the Bitcoin network's energy consumption in July 2019, when it launched the Cambridge Bitcoin Electricity Consumption Index (CBECI)—an online tool providing real-time estimates of the network’s annual electricity use. The tool drew interest, and many organizations began using it to assess Bitcoin’s environmental impact.

Over time, it became evident that the estimates were inaccurate. In August 2023, CCAF updated the index’s methodology, acknowledging that previous estimates had overestimated the network’s energy consumption. The update improved accuracy by factoring in the efficiency of new mining equipment and other variables.

For example, the original model estimated Bitcoin’s consumption at 104 TWh in 2021, but the revised data lowered it to 89 TWh. Similarly, the 2022 estimate dropped from 105.3 TWh to 95.5 TWh after the methodology update.

The impact of Bitcoin’s energy growth

As we can see, Bitcoin's energy consumption has risen from 89 TWh to 138 TWh in the past three years. The earlier figure is comparable to Chile (88 TWh) and Colombia (89 TWh), while the latter matches the consumption of Norway (135 TWh) and Sweden (137 TWh). Due to this “excessive energy consumption,” Bitcoin has long been targeted by Greenpeace and other environmental advocates.

At first glance, this may seem excessive—a waste of electricity. But that changes when compared to other sectors. For instance, the industrial sector consumes the lion’s share of electricity globally (10,300 TWh). The residential sector follows (6,540 TWh), along with commercial and public services (5,150 TWh).

As for finance, a 2021 report by mining company Galaxy Digital showed that banks (264 TWh) and gold mining (240 TWh) significantly outpaced Bitcoin in energy consumption.

Additionally, the artificial intelligence sector has grown rapidly in recent years. The International Energy Agency (IEA) estimated that AI data centers used around 1.5% of the world’s electricity in 2024 (415 TWh).

The case for Bitcoin

Bitcoin’s high energy consumption isn’t inherently bad—it’s far from the world’s most energy-intensive sector. Moreover, the network relies largely on “green energy.” According to CCAF’s latest study, the share of sustainable energy used by Bitcoin has risen to 52.4%, up from 37.6% in 2022.

The benefits of Bitcoin far outweigh the resources spent on it. Its unique architecture provides an unprecedented level of security and reliability for BTC holdings. Unlike traditional financial systems where inflation or political decisions can devalue money, Bitcoin is governed by a mathematically fixed issuance that cannot be altered.

While fiat currencies lose purchasing power over time, Bitcoin has shown long-term growth and resilience. Its algorithms are designed to create scarcity over time, making it increasingly attractive to investors. The energy spent on securing the network ensures that this scarcity is real and that transactions are immutable and final.

That’s why Bitcoin shouldn’t be judged solely by the kilowatt-hours it consumes. It has become a reliable alternative to traditional money—offering open access, strong security, and transparent rules. And that’s worth every bit of energy it uses.

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