As Crypto Prices Fall, So Does the Industry’s Energy Use
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Cryptocurrency prices, which were soaring at the end of 2021, have plummeted into a so-called “crypto winter.” But could this chilly period for cryptocurrencies help cool the climate as well? When Bitcoin prices fell below $20,000 this month, its energy use fell as well. “Part of what it means is that global electricity consumption is now dropping by about half a percent; roughly half of what is needed to power global data centers,” Digiconomist tweeted June 18.
Cryptocurrencies reached an all time high at the end of 2021, Insider reported. The market amassed a value of $3 trillion in November of 2021, higher than the November values of Microsoft or Apple. However, the cryptocurrency boom spurred concerns for the climate. Mining cryptocurrency, especially Bitcoin, is very energy intensive, and Bitcoin miners have even taken to revitalizing aging fossil fuel infrastructure to power their transactions.
Then, the crypto bubble began to deflate because of concerns about a recession and inflation, Insider reported. The entire market value has fallen to $903.2 billion as of Wednesday. The market decline meant that Bitcoin’s prices have fallen by half since May 1 and its energy consumption has fallen for the first time since the pandemic, Digiconmist founder and Dutch economist Alex de Vries told Quartz.
Overall, Bitcoin’s energy use has declined by a third since June 11, The Guardian reported, though it still burns the same amount as Argentina does in a year and a single transaction still uses as much energy as a U.S. household in 50 days. Etherium, another major cryptocurrency, has seen its energy use decline by just a little more than half, from 94 terawatt-hours a year to 46.
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June 29, 2022 at 8:13 AM #493495Babel 17Participant
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In a yooge way too. The explanation I read is that the math is simple, it takes electricity to mine, which costs more than ever for most miners, and now that AMD and nVidia have finally caught up with demand for their video cards, the value of used ones is starting to plummet, so now is the time to sell.
Don't Kill the Whale
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