Bitcoin (Bitcoin), the world’s most valuable Cryptocurrencyaccording to new estimates from Arcane Research, could become a sizeable energy consumer in the future, but only if it reaches millions of dollars.
Crypto Research and Analysis Firm Arcane Research on Monday release A report estimating the development of Bitcoin’s energy use towards 2040.
The report, authored by Arcane Research analyst Jaran Mellerud, points out that Bitcoin’s future energy consumption will vary greatly depending on future Bitcoin prices, along with factors such as transaction fees, electricity bills, and more. I’m here.
If BTC’s price hits $2 million in 17 years, Bitcoin could consume 894 terawatt hours (TWh) per year, 10 times its current level, the report suggests. Despite huge growth, such energy consumption will only make up his 0.36% of estimated global energy consumption in 2040, up from his 0.05% share of Bitcoin today, analysts estimate. I’m here.
“Currently, based on energy consumption of 88 TWh and an average energy price of $50 per MWh, Bitcoin miners spend about 50% of their income on energy,” said Mellerud.
Bitcoin’s future energy consumption is much lower in a less bullish scenario. For Bitcoin to consume 223 TWh per year, the price of BTC would need to reach $500,000 by 2040. The report points out that if Bitcoin trades at $100,000 over 17 years, BTC mining will only consume 45 TWh per year.
The analyst went on to mention the significant implications of the Bitcoin halving. 50% reduction in block rewards for minersBTC’s price must have been rising at a staggering pace due to the halving, according to the report, but the “mitigating effect” of the halving could be offset by higher transaction fees in the future. “Such growth will only occur when there is a great demand for using Bitcoin as a payment system,” Mellerud wrote, adding:
“Bitcoin’s price is driven by market demand for Bitcoin as a store of value, while transaction fees are determined by Bitcoin’s use as a medium of exchange.”
As a store of value and a medium of exchange constitute two of money’s most important functions, the report also suggests that Bitcoin’s energy consumption will reach appreciable levels only if it succeeds as money. suggesting.
Many BTC skeptics believe that such a scenario is highly unlikely, suggesting that there is no need to worry about Bitcoin’s energy consumption, stating:
“There is good news for those who want to see Bitcoin’s energy consumption decline. If Bitcoin fails as a monetary system, your wishes will come true, so relax in your easy chair. Bitcoin has failed.” Do you think you will?”
The Bitcoin mining industry has suffered a major decline in 2022 amidst the ongoing cryptocurrency winter. Choose to sell your BTC holdings Continue operation. US mining companies are also facing pressure from regulators. Request energy consumption data From 4 major BTC mining companies.
Despite the increasingly bearish environment, many Bitcoin miners remain optimistic about Bitcoin’s short-term and long-term price prospects.according to Canaan Senior Vice President Edward Lumining is a “sound and profitable business” in the long run.