Bitcoin uses more energy than ever before
A recent article in the British Telegraph claimed that a Bitcoin transaction consumes more energy than an average British household in two months.
Relying on figures from the digiconomist, the report added that energy consumption, at 77.78 terawatt hours, has reached an annual record, which is all Chilean needs.
Alex DeVries, blockchain expert at PWC and founder of Digiconomist, claims that massive amounts of e-waste are ultimately generated by outdated mining equipment. He added that 98% of the mining hardware is obsolete within a year and a half of its first use. That was enough for Ripple boss Brad Garlinghouse to add his mustard by saying that the mining of BTC and ETH is a massive waste.
Ethereum is way more efficient
Why he criticizes ETH is a mystery, as the figures from the beta index for Ethereum’s estimated annual electricity consumption are currently only 8.08 TWh. That’s just ten percent of Bitcoin’s consumption.
However, the numbers are somewhat misleading, as much of Bitcoin mining uses renewable energy such as solar or hydro. One miner even replied that 97% of its energy supply comes from renewable sources.
“It is simply not possible to make a profit with carbon-intensive energy because we need electricity with an output of less than 2.3 cw / h.”