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Ethereum Founder Criticizes BTC As Bitcoin’s Real Energy Use Is Questioned

Published

3 years ago

June 10, 2022

Ethereum Founder Criticizes BTC As Bitcoin's Real Energy Use Is Questioned

Bitcoin‘s real energy use is questioned by one of the founding members of Ethereum.

Infoexpert24 reports that as the ever-raging debate around Bitcoin’s energy consumption continues, a founding member of Ethereum Anthony Donofrio claims that Bitcoin uses nearly 1% of the world’s electricity, which is “way too much” energy.

According to figures from Digiconomist, Bitcoin (BTC) currently uses 0.82% of the world’s power while Ethereum (ETH) uses 0.34%. Ethereum researcher Justin Drake posted the figures on his Twitter page which Donofrio retweeted, stating:

It looks like Ethereum proponents are attempting to take shots at Bitcoin while simultaneously promoting Ethereum’s upcoming transition to proof-of-stake, Drake added another tweet moments later that read: “Ethereum post-merge: 0.000% of the world.”

If bitcoin is really using nearly 1% of the energy on earth that is way too much for a pet rock. https://t.co/CDL32jk5FF
— Texture, PhD (@iamtexture) June 9, 2022

However, the validity of these figures is in doubt. Even Drake was forced to acknowledge alternative sources of data in a later tweet which estimated energy consumption figures at nearly 60% lower.

Data sourced from Digiconomist, which markets itself as a platform that “exposes the unintended consequences of digital trends,” has drawn criticism from blockchain industry professionals in the past. The most notable of which is fellow Ethereum developer Josh Stark who called out the publication for frequently presenting the worst-case scenario when it comes to blockchain technology.

Ethereum Founder Criticizes BTC As Bitcoin's Real Energy Use Is Questioned

In November last year, Stark published a Twitter thread that questioned the accuracy of Digiconimist’s research methodology. Stark pointed out that almost all of the figures concerning blockchain power consumption were at the “very high end” of any theoretical outcome, especially when compared to more rigorous sources like the University of Cambridge.

Where Digiconomist claims that Bitcoin currently consumes 204 terawatt-hours (TWh) worth of electricity per year, the University of Cambridge’s Bitcoin Electricity Consumption Index estimates that Bitcoin’s real consumption is much closer to 125 TWh, a 39% difference.

While it may be a well-known fact that Bitcoin’s proof-of-work consensus mechanism is an energy-consuming process, the discussion around just how much power the Bitcoin network actually uses remains a hot-button issue.

As of January this year nearly 60% of global mining operations were reportedly powered by renewable energy sources, and Bitcoin mining operators are rushing to utilize “stranded” natural gas resources that would normally be burned off. Additionally, a report published by CoinShares in January this year found that Bitcoin mining may account for just 0.08% of the world’s total CO2 emissions in 2021.