This process of requiring network contributors to dedicate time and resources to creating new blocks ensures the network remains secure. But this security comes at a price. The Bitcoin network currently consumes around 93 Terawatt Hours (TWh) of electricity per year  – around the same energy consumed by the 34th largest country in the world. 


This appetite for electricity has drawn widespread criticism from celebrities such as Tesla CEO Elon Musk to government bodies such as China’s State Council and the United States Senate over Bitcoin’s impact on climate change. But while these figures are alarmingly high, it’s important to note that Bitcoin mining at most accounts for 1.29% of any single country’s energy consumption. Not to mention, Bitcoin is a complete financial system whose energy consumption can be measured and tracked, unlike the fiat system which cannot be accurately measured and requires a range of additional layers to function, including ATMs, card machines, bank branches, security vehicles, storage facilities and huge data centers. 


There are also a number of initiatives including the Crypto Climate Accord and the Bitcoin Mining Council that aim to improve Bitcoin’s carbon footprint by encouraging miners to use renewable sources of energy.