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New York Times Article Claims One Bitcoin Transaction Uses 2,000 kWh of Electricity

Power Lines

In a New York Times (NYT) post– released the other day (March 22)– about the crypto mining market’s concentrate on renewable resource, it was discussed that according to some quotes “a single Bitcoin transaction now requires more than 2,000 kilowatt-hours of electricity.”

The NYT post, which was composed by innovation press reporter David Yaffe-Bellany, begun by stating that thanks to “criticism from politicians and environmentalists,” the crypto mining market has “embarked on a rebranding effort to challenge the prevailing view that its electricity-guzzling computers are harmful to the climate” which “all five of the largest publicly traded crypto mining companies say they are building or already operating plants powered by renewable energy, and industry executives have started arguing that demand from crypto miners will create opportunities for wind and solar companies to open facilities of their own.”

For example, Argo Blockchain is developing a 126,000-square-foot crypto mining center in Texas that– according to the company’s CEO Peter Wall– will be “fueled mostly by wind and solar energy.”

So far, so great.

Then, came the following area of the post, which the Bitcoin neighborhood discovered much more difficult to accept:

In Bitcoin’s early years, a crypto enthusiast could mine coins by running software on a laptop. But as digital assets have become more popular, the amount of power necessary to generate Bitcoin has soared. A single Bitcoin transaction now requires more than 2,000 kilowatt-hours of electricity, or enough energy to power the average American household for 73 days, researchers estimate.

To achieve that, some miners are reviving broken-down coal plants, or using low-cost natural gas to power their computers. Last month, a study in the journal Joule found that Bitcoin mining worldwide may be responsible for about 65 megatons of carbon dioxide a year, comparable to the emissions of Greece.

Here is Nic Carter, who is a general partner at Castle Island Ventures, as well co-founder and chairman of Coin Metrics, explaining why the claim that one Bitcoin transaction needs over 2000 kWh of electricity is wrong:

The article went to say that last May, shortly after Tesla CEO expressed his concerns about “rapidly increasing use of fossil fuels for Bitcoin mining and transactions,” MicroStrategy CEO Michael Saylor aided with developing the Bitcoin Mining Council, “a voluntary and open forum of Bitcoin miners committed to the network and its core principles.”

The post discussed that Bitcoin mining company TeraWulf, which belongs to the Bitcoin Mining Council, has “pledged to run cryptocurrency mines using more than 90 percent zero-carbon energy.” Apparently, TeraWulf has “two projects in the works — a retired coal plant in upstate New York fueled by hydropower, and a nuclear-powered facility in Pennsylvania.”

TeraWulf CEO Paul Prager informed the New York Times:

Everyone I talk to now is talking about carbon neutrality. The language has absolutely changed.

Disclaimer

The viewpoints and views revealed by the author, or any individuals discussed in this post, are for informative functions just, and they do not make up monetary, financial investment, or other recommendations. Investing in or trading cryptoassets includes a threat of monetary loss.

Image Credit

Featured Image by “_anaposa_” through Unsplash com


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