Bitcoin’s energy consumption rivals entire nations, drawing fierce criticism. The Cambridge Bitcoin Electricity Consumption Index estimates it uses 120TWh annually—more than Norway. Most mining relies on fossil fuels, with coal-powered operations in Kazakhstan and Texas contributing to CO2 emissions.
But solutions are emerging. Green mining initiatives now leverage:
- Excess renewable energy (e.g., El Salvador’s volcanic geothermal Bitcoin mining).
- Flared natural gas (oil companies like ExxonMobil convert waste gas into mining power).
- Carbon credits (Square’s $10M fund offsets Bitcoin’s footprint).
Critics argue these are Band-Aids, not cures. Ethereum’s switch to proof-of-stake (PoS) reduced its energy use by 99%, but Bitcoin’s proof-of-work (PoW) remains entrenched. Some miners, like Jack Dorsey’s Block, are developing clean-energy ASICs to improve efficiency.
The verdict? Bitcoin must evolve or risk regulatory bans in eco-conscious markets like the EU.