Bitcoin Energy Consumption To Fall As Prices Surge

The BTC mining is often described as an energy intensive process and the future will depend upon the price of Bitcoin as per a research by Arcane Research. As per Arcane if Bitcoin values surge to $2 Million by 2040, the Bitcoin Energy Consumption for achieving this number could be anywhere around 894 TWh per year.

However, if BTC prices reach $500,000 by 2040, the energy consumption for achieving this number will be 223 TWh per year. This is almost two times the present energy consumption even if the the BTC values surge almost 20 times.

BTC Price Wille Decide Bitcoin Energy Consumption

An analyst at Arcane Research Jared Mellerud highlighted this correlation between Bitcoin price and the Bitcoin Energy Consumption in a series of tweets. The energy consumption of the Bitcoin Blockchain will depend largely on the BTC values, transaction fees, percentage of miner revenue spent on energy, and average energy price.

As all ready stated if BTC prices could achieve $2 million by 2040, the energy consumption will be 894 TWh per year. BTC mining operations will contribute 0.36% of projected global energy consumption in 2040, greater than the 0.05% share presently.

However, in the incidence of BTC prices reaching $500,000 by 2040, a condition precipitated by Bitcoin halving and positive developments. In this scenario Bitcoin Energy Consumption will be 223 TWh per year, slightly more than double the current level.

The Bitcoin values could hit $100k by 2040 because of halving. In such a situation, the energy will become 50% to become 45 TWh per year or 0.02% of the global energy consumption. This scenario will happen in a bearish scene.

One more variable which will decide the Bitcoin energy consumption will be the transaction fees. If the transaction increases 0.1 BTC in transaction fees per block, then at the price of 100k, the energy consumption increases by 7 TWh

If BTC prices could reach $2 million by 2040 and transaction fees remain stable, the share of the number one crypto asset in the global energy consumption will be 0.36%

It could be seen as a massive increase from today’s 0.5% of the present world energy consumtyion it pales in comparison to the 2% energy consumption share of the cement production industry. Cement production consumes 4,238 TWh of global energy consumption.