Citigroup Reports That Bitcoin Mining Power Consumption Is At An All-Time High
The debate concerning the power consumption of Bitcoin mining looks like it has no end. Before now, many environmentalists and crypto analysts have criticized the power consumption of Bitcoin mining. Most of the criticisms of this activity have also focused on the aftermath of the activity’s effect, believed to leave behind carbon fossils.
This has now led many in the society to implore these miners to look for an alternate source of energy, as it appears that, despite their operations leaving a debilitating effect behind, the energy consumption of the activity is at an alarming rate.
China may no longer accommodate Bitcoin miners in the future
Unfortunately, according to a new report by Citigroup analysts, the energy consumption of Bitcoin has increased by more than 66%, from what it used to be barely five years ago. Despite the success of Bitcoin, which has seen the digital asset become one of the most coveted assets by investors, the mining operations of the cryptocurrency have continued to be a matter of concern for everyone involved around it.
The Citigroup analysts believe that the energy consumption of mining the cryptocurrency has increased, as its value has also plummeted. However, many are concerned about the carbon effect of the aftermath of mining the cryptocurrency, which is believed to be devastating.
The global power demand of the Bitcoin network has rapidly increased by more than 60%, a figure that places the energy consumption of mining the cryptocurrency at the same level as many African countries’ energy consumption. Surprisingly, most of these mining activities are currently occurring in China, as many of these miners are taking advantage of the cheap electricity offering of the Asian country.
Unfortunately, in their report, the Citigroup analysts confirm that China’s regulatory body is proposing a new regulation that will scrutinize these miners’ activity. The country’s regulators believe that if crypto adoption continues to be high, it will subsequently increase mining activity, which will continue to increase the operation’s effect.
Miners always seek cheap energy, not minding the effect
The environmental impact of Bitcoin mining will continue to be debated by many in the society, especially if t continues to leave harsh effects behind. However, the miners’ operations, who are incentivized for discovering new blocks, have been rewarding enough.
Around February, a report from crypto data analytics provider HenryA confirmed that Bitcoin miners had generated an ATH revenue in that month, as they are the biggest beneficiary of the Bitcoin boom.
However, the need for cleaner energy to mine Bitcoin has also be demanded by many analysts, who believe that the effect of such clean energy will leave little or no carbon effect.
However, it is unclear whether miners will start to adopt such an operation model, as they have always been in search of cheap energy sources. On the other hand, Bitcoin has reached greater height this week, as the digital asset is currently trading at $63,345 at the time of writing.
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