A study of the UK financial site MoneySuperMarket calculates the cost of electricity for each transaction from Bitcoin
For a long time the electricity consumption of Bitcoin In fact, the CEO of Tesla, Elon Musk, stopped accepting BTC as a means of payment at his electric car company, Tesla, due to the environmental damage that crypto produces. In fact, he indicated that only when mining becomes more environmentally friendly, will he accept the currency again.
Well now a study done by the UK financial site MoneySuperMarket, and also published by the prestigious magazine Fortune, accounts for a reality: the high electricity costs (with the consequences for the environment) of each transaction Bitcoin, even the smallest, such as paying for a coffee or a pizza with crypto. At the same time, compare with other cryptocurrencies.
BTC: 1,173 kilowatt hours
As the report indicates, each transaction of Bitcoin it consumes 1,173 kilowatt hours of electricity. That is the volume of energy that could “To feed the typical UK household for more than three months and an American household for six weeks”, the authors add.
Mining Bitcoin that allows a purchase, sale or transfer, postulates, uses electricity that costs USD $ 173 per transaction. That number is based on a world average cost per kWh of 9.0 cents over the past 12 months, the report says.
In the analysis, he compared with the most popular cryptocurrencies and revealed the following in terms of electricity spending:
It also notes: “Based on the number of Bitcoin transactions that took place over a 12-month period, we estimate that total energy use is approximately 123 Terawatt hours (TWh) or 123 billion kWh.” This compares it to 39.19 terawatts of Ethereum and only 0.01 terawatts of Cardano, to show two examples.
This means that Bitcoin only uses more energy than 185 countries and is comparable to Norway’s annual energy consumption, he notes.
Regarding the value of the electricity spent per transaction, he makes the following comparison:
How much energy do NFTs use?
He also dedicates a part of the report to reviewing the energy used by non-fungible tokens, NFT.
It highlights that the majority of NFT transactions take place on the blockchain Ethereum, so the logic could lead to believe that an NFT transaction would use the same amount of energy as a transaction Ethereum.
Unfortunately, he says, it is not that simple.
“Each step of the NFT cycle requires energy, from adding (or minting) a token on the blockchain, bidding for an NFT at auction, the transaction between the buyer and the seller, and even future transactions in the resale market.
While it varies on a case-by-case basis, it is estimated that the average NFT uses 340 kWh and has a carbon footprint of 241 KgCO2.
We can combine this data with the total number of initial and secondary NFT sales during the last 12 months to find the annual energy bill and the carbon footprint of the NFT market ”.
According to the calculation, then, the cost per NFT is USD $ 50.32.
Version of DailyBitcoin
Picture of Unsplash