As of 2025, the Bitcoin network consumes roughly 100–120 terawatt-hours (TWh) of electricity per year — about the same as a medium-sized country like the Netherlands.
However, over 55% of that energy now comes from renewable or waste energy sources, making Bitcoin’s actual environmental footprint smaller than many assume.Why Bitcoin Uses So Much Energy
Bitcoin runs on a Proof of Work (PoW) system, where miners compete to solve cryptographic puzzles using powerful computers.
This process — called mining — secures the blockchain and issues new bitcoins.
Every block mined requires:
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Massive computational power
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Continuous electricity supply
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Cooling systems to handle heat output
This design ensures network security — but at a high energy cost.
The Numbers Behind Bitcoin’s Energy Use
| Metric | Value (2025 est.) | Source/Context |
|---|---|---|
| Annual Energy Use | ~110 TWh/year | Cambridge Bitcoin Electricity Consumption Index (CBECI) |
| Share of Global Energy Use | ~0.45% | Less than data centers worldwide |
| CO₂ Emissions (approx.) | ~40 Mt/year | Lower than gold mining or aviation fuel refining |
| Energy per Transaction | ~700–900 kWh | Highly variable by network activity |
That might sound high — but Bitcoin’s total energy use ≈ global tumble dryers, and less than gaming consoles worldwide.
Where the Energy Comes From
A 2024–2025 trend shows a shift toward renewable and stranded energy
| Source | Approx. Share | Notes |
|---|---|---|
| Hydropower | 25–30% | Paraguay, Canada, China (off-grid) |
| Wind & Solar | 15–20% | Texas, UAE, Namibia |
| Natural Gas (Flared/Waste) | 10–15% | Captured from oil fields instead of burned |
| Coal & Fossil Mix | <40% | Declining as miners relocate to greener grids |
Bitcoin mining increasingly uses energy that would otherwise be wasted, such as flared gas or excess hydro output — turning inefficiency into value.
Energy Efficiency Improvements
Modern ASIC miners are far more efficient than older models:
Bitcoin mining increasingly uses energy that would otherwise be wasted, such as flared gas or excess hydro output — turning inefficiency into value.
Energy Efficiency Improvements
Modern ASIC miners are far more efficient than older models:
| Miner Model | Efficiency (J/TH) | Energy Use | Improvement |
|---|---|---|---|
| Antminer S9 (2016) | 98 | 1,350 W | — |
| S19 XP (2022) | 21.5 | 3,010 W | 4.5× more efficient |
| S21 (2024) | 17.5 | 3,500 W | 5.5× more efficient |
As efficiency rises, hashrate increases faster than energy use, meaning the network gets more secure per watt consumed.
Comparing Bitcoin to Other Industries
As efficiency rises, hashrate increases faster than energy use, meaning the network gets more secure per watt consumed.
| Industry / System | Annual Energy Use | Notes |
|---|---|---|
| Bitcoin Network | ~110 TWh | 55% renewable, decentralized |
| Gold Mining | ~130 TWh | Heavily fossil-fuel dependent |
| Banking System | ~200 TWh | Includes ATMs, branches, servers |
| Data Centers (Global) | ~240 TWh | Centralized cloud infrastructure |
Bitcoin uses less power than the global banking or gold sectors, while offering a borderless alternative financial network.
The Renewable Revolution in Mining
From Texas to Paraguay, miners are increasingly connecting to renewable microgrids and grid-balancing programs.
For example:
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Texas miners get paid to pause operations during grid stress, stabilizing local energy demand.
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Icelandic miners run entirely on geothermal and hydro power.
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African projects use solar-based container farms near hydro sources.
This evolution makes Bitcoin one of the fastest-decarbonizing energy consumers in the world.
The Misconception: Energy ≠ Emissions
Energy consumption ≠ environmental harm.
What matters is where the energy comes from, not how much is used.
Bitcoin mining acts as a buyer of last resort for stranded or excess renewable energy — helping make green projects more profitable and scalable.
Summary
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Bitcoin consumes ~110 TWh/year — less than global banking or data centers.
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Over half of its power comes from renewables or waste energy.
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New mining technology continues to improve efficiency and sustainability.
Bitcoin isn’t destroying the planet — it’s reshaping how we think about energy markets and digital finance.