Arcane Research analyst forecasts Bitcoin network energy consumption in 2040

If by 2040 the price of Bitcoin rises to $2 million, the annual energy consumption of the network of the first cryptocurrency will reach 894 TWh. This figure is roughly ten times higher than today, noted by Jaran Mellerud, an analyst at Arcane Research.

According to his estimates, at a Bitcoin price of $500,000 the annual energy consumption would be 223 TWh, just over twice current levels.

“If the price of Bitcoin reaches $2 million by 2040 and transaction fees remain at historically average levels, the share of digital gold in global energy consumption would be 0.36%,” wrote Mellerud.

The graph above shows that Arcane Research’s pessimistic scenario assumes Bitcoin at around $100,000. At that level, energy consumption would total 45 TWh in 2040.

According to data from the Cambridge Centre for Alternative Finance, the Bitcoin network’s energy consumption is currently comparable to that of countries such as the Philippines, Kazakhstan, Pakistan and the Netherlands.

In the Bitcoin Mining Council report, it is noted that over the year Bitcoin mining efficiency rose 46%, and the share of “green electricity” in consumption rose by 6% year on year to 59.5%.

Earlier, members of the U.S. House Committee on Energy and Commerce urged miners to provide data on environmental impact.

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.