Bitcoin users consume the same amount of energy that they spend on heating or cooling. Between 35% and 70% of the electricity that Bitcoin uses comes from renewable sources.
Experts recently debated the energy consumption of cryptocurrency mining, concluding that the benefits of Bitcoin outweigh the costs.
Julián Dragonsch, an electrical engineer at the NGO Bitcoin Argentina, spoke about the energy consumed by the Bitcoin network. He commented that this is less than gold or copper mining, which people have practiced for many years.
Sebastián Kind, former undersecretary of Renewable Energies of Argentina, and Sebastián Nill, CEO of the firm Aeternam Broker, discussed Bitcoin mining. They said that many people questioned its electrical energy consumption, assuming that it is excessive and harms the environment.
The Energy Consumption of Mining Is Lower than Many Presume
Dragonsch highlighted that the energy consumption of mining is not as high as some people presume. He estimates that each user on the network only consumes 70 watts on average, equivalent to what he could spend on heating or cooling.
He stated that canceling consumption above 70 watts per user would imply the end of YouTube, Spotify, and live TV, among others.
Likewise, the engineer estimates that the overall energy expenditure of the Bitcoin blockchain is around 9.3 gigawatts. He cited a study by CoinShares, which indicates that between 35% and 70% of that energy comes from renewable sources.
Bitcoin Miners Have the Right to Consume the Energy that They Use
Despite that, he said that he respected positions contrary to his. Therefore, he believes that people have the right to consume the amount of energy that they are willing to pay.
He recalls that miners have to pay for the energy that they consume. For that reason, he considers the criticism that miners are the bad guys to be unfair.
Regarding the benefits that it provides, he thinks that the Bitcoin network is an important project whose currency is scarce and resistant to attacks by states.
Sebastián Nill spoke about his experience in the ecosystem. He said that the sector generates jobs and creates a space for interaction and training.
The Use of Renewable Energy Favors Bitcoin Mining
Sebastian Kind focused on energy cleansing, questioning the rating of Bitcoin based on the type of energy that it uses.
The former Argentine official sees many growth opportunities in this sector, although it faces obstacles. He highlighted that the use of wind and solar energy has increased.
Kind said that these energy sources almost reached 10% of the electric energy matrix in 2020 and recently marked 24%, especially in Argentina. He thinks that those renewable resources are helpful, and Bitcoin mining can maximize them.
However, the former official warned that renewable sources require a high initial investment, although they are profitable in the long term in Argentina. For that reason, whoever installs a power plant associated with a cryptocurrency mining company must guarantee a contract of about 20 years.
By Alexander Salazar
