What does the fall of Bitcoin mean for the environment?

After its recent fall

Last November, Bitcoin reached $ 69,000 with annual electricity consumption estimated at 200 TWh, equal to the amount of electricity consumed by all data centers in the world in one year. The recent decline of Bitcoin, however, brings it below a key point in terms of its impact on the environment.

As long as Bitcoin remains above $ 25,200, mining remains profitable using 180 TWh per year, according to a study published last year by digital currency economist Alex de Vries. When the price falls below this level, miners can reduce mining or even stop it altogether, as the cost of electricity will prevent them from making a significant profit.

We fall in price levels that make mining more difficult for miners. They not only limit their options for further development, but also affect day-to-day businesses. If we talk about a short-term decline, nothing will change. But if prices do not rise quickly again, miners will have to make some difficult decisions.

Even if Bitcoin stabilizes at $ 24,000, it will drop its grid power consumption to 170 TWh per year, which may sound like a slight drop, but it corresponds to Ireland’s electricity use for a year.

In terms of environment, Bitcoin as the largest cryptocurrency, affects it more. But it is not the only one. De Vries believes that the fall in cryptocurrencies and the consequent decline in energy consumption from mining will result in a reduction in greenhouse gas emissions into the environment.