Mining Bitcoin will cost less than 0.5% of global energy if BTC reaches $2 million: Arcane

Bitcoin could be a major energy consumer in 2040, but only if its price reaches millions of dollars, according to new estimates from 'Arcane Research.< /p> New

Bitcoin (BTC), the world's most popular cryptocurrency, has the potential to be a major energy consumer in the future, but only if it reaches multi-million dollars, according to news Arcane Research estimates.

Crypto research and analysis firm Arcane Research released a report on Monday estimating the evolution of Bitcoin's energy consumption around 2040.

Written by Arcane Research analyst Jaran Mellerud, the report highlights that the future energy consumption of Bitcoin differs massively depending on the future price of Bitcoin as well as factors such as transaction fees, prices of electricity and others.

If the price of BTC reaches $2 million in 17 years, Bitcoin could consume 894 terawatt hours (TWh) per year, 10 times more than today, according to the report. Despite huge growth, this energy consumption would represent only 0.36% of estimated global energy consumption in 2040, compared to 0.05% today for Bitcoin, the analyst estimated.

“Currently, based on their energy consumption of 88 TWh and an average energy price of $50 per MWh, Bitcoin miners spend around 50% of their income on energy,” said noted Mellerud.

Bitcoin's future energy consumption would be much lower in less bullish scenarios. The price of BTC is expected to reach $500,000 by 2040 for Bitcoin to consume 223 TWh per year. If Bitcoin trades at $100,000 in 17 years, BTC mining would only consume 45 TWh per year, the report notes.

Bitcoin Estimated Power Consumption 2022- 2040. Source: Arcane Research

The analyst went on to mention the significant impact of...