According to a report released by Arcane Research on August 22, if the price of the leading cryptocurrency hits $2 million by 2040, energy used for mining bitcoin (BTC) will increase by a factor of 10 and reach 894 Terawatt-hours (TWh) yearly, as stated by Cryptoslate.

Using bullish, bearish, and neutral future scenarios as a basis, the paper calculated BTC’s future energy usage. If prices continue to fall and only hit $100,000 by 2040, the energy usage will have decreased to 45 TWh, or, according to estimates, 0.02% of the world’s total energy consumption, from its current levels, Cryptoslate noted.

In the neutral scenario, energy consumption levels are predicted to be around 223 TWh, where prices approach $500,000 by 2040. It is possible to see the impacts of halving in both bearish and neutral scenarios. The negative scenario implies a 4x increase in prices. Although a rise in energy consumption would make sense, the amounts predicted are lower than those observed now. Similar to the negative scenario, the neutral scenario sees a 20x increase in costs and a 2x increase in consumption.

Every 210,000 blocks, or roughly every four years, the block subsidy is cut in half. As a result, mining’s energy requirements will gradually decline over time. The study claimed, “Bitcoin’s energy consumption will only increase if the bitcoin price increases at a faster rate than the block subsidy decline. The block subsidy halves every fourth year, and the bitcoin price must double every fourth year to offset this effect.”

The report further added, “In this case, the bitcoin price must be around $650k in 2040 for its energy consumption to be higher than the current.” The crypto community is becoming more optimistic about sustainable energy sources in addition to its declining energy needs. The neighbourhood has been figuring out ways to use garbage, the solar, wind, hydro, geothermal, and tidal energy.

The crypto community has been the source of many partnerships, notably after the end of 2021. Block, Blockstream, and Tesla teamed up in May 2022 to build a solar-powered green mining farm.

(With insights from Cryptoslate)

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