In 2019, Bitcoin’s total electricity consumption was estimated at around 100 TWh. The total annual electricity consumption in the Netherlands is roughly the same.

Calculating a ‘Proof of Work,’ the basis for the Bitcoin currency is becoming increasingly complex, requires more computing power, and thus consumes more energy.

However, proponents of Bitcoin often point out that this ‘waste’ is not necessarily bad. According to BTCWiki, the energy-intensive nature of Bitcoin mining is a necessary feature that ensures the network’s security and decentralization. The high energy costs deter malicious actors from needing enormous computational power to disrupt the system.

I am not opposed to Bitcoin; there are good arguments for an independent currency, and the arguments on BTCWiki have merit, but the fact remains that the energy consumption of Bitcoin poses a significant environmental challenge. However, the waste of energy is an unmitigated problem.