Bitcoin, the top-notch cryptocurrency, has heavily contributed to the innovation of the digital finance sectors, but it is also a lightning rod in the climate debate. Some call it an energy-hungry technology that contributes to climate change, yet some others defend it by saying that the narrative is exaggerated and even outdated.
In today’s article, we will dive deep to understand what Bitcoin’s energy footprint actually is: Myth or Reality? Here we will combine real-time data to get a clear picture of how significant Bitcoin’s energy footprint really is.
Why does Bitcoin consume a lot of energy?
Bitcoin, the most prominent cryptocurrency, follows the Proof of Work; it is a consensus mechanism in which the miners compete to solve cryptographic puzzles to secure the network and validate transactions.
This process, known as mining, demands immense computational power. The difficulty of mining is intentional, and Bitcoin uses energy as a security layer because the higher the hashrate is, the more secure the network is.
Following the growth in mining price of Bitcoin, more miners are joining, and the more miners, the more energy consumption. When the price declines, the inefficient miners exit.
A quick gist of the figure for energy consumption
As per the data from the Cambridge Bitcoin Electricity Consumption Index, the annualized consumption ranges between 70 TWh and 240 TWh, with mid estimates usually near 150- 180 TWh.
It is worth noting that the energy consumption is comparable to that of nations like Poland and Malaysia. On the other hand, according to data from Digiconomist Bitcoin Energy Index, the electricity demand per year is 175.87 TWh with annual carbon emissions of 98.10 Mt CO².
Some other available metrics say annual energy by Bitcoin miners is 173 TWh yearly, with 54% of it powered by renewable sources.
Myth vs reality
The myth that Bitcoin wastes energy is totally incorrect, as it is used to secure a decentralized monetary system, and its cost is directly tied to its utility in securing global and borderless transactions.
The second most popular myth is that Bitcoin is uniquely harmful, but the reality is that its footprint is large but not unique; for example, data centres, streaming platforms, and AI also consume massive energy.
Just for gist, the rough consumption of Bitcoin is 175 TWh annually, the global data centres’ consumption is 240- 340 TWh/ year, and AI and similar consume nearly the same amount of energy.
The real question is Carbon emissions from Bitcoin mining
Energy use alone doesn’t fully capture Bitcoin’s environmental impacts; what matters most is the source of the energy. The carbon intensity of mining changes dramatically depending on whether the electricity is taken from sources like coal, natural gas, renewable, or others.
The carbon emissions from mining in coal-heavy regions are significantly greater; however, miners using solar energy, hydropower, and geothermal energy contribute a much smaller carbon footprint.
Other than electricity, one major overlooked factor is embodied emissions from mining hardware, yet the production and disposal of mining rigs, such as ASICs, carry their own hidden carbon cost.
Digiconomist estimates that Bitcoin currently produces about 98 million tokens of CO² annually.
Conclusion
Bitcoin’s energy footprint remains one of the most debated issues in the digital era. While critics highlight its high energy use and carbon emissions, defenders emphasize its growing reliance on renewable energy and its role in securing a borderless monetary system.
Real-time data indicate that Bitcoin consumes approximately 175 TWh annually, comparable to global industries such as data centers, while emitting roughly 98 Mt CO₂. The reality is nuanced: Bitcoin is neither the climate villain often portrayed, nor entirely harmless.
Its future footprint depends largely on continued innovation, renewable adoption, and responsible regulation to balance sustainability with financial progress.