It is evident that increase in Bitcoin price is marked by rise in consumption. The extent is so great that the electricity exhausted by all the electric cars in the world lags behind that of energy that Bitcoin eats up.
For the year 2018, Bitcoin has demanded three times increased power. Bitcoin mining is supposed to use up 125 terawatt hours of energy. Previous year, this unit was held upto 36 terawatt hours.
In contrast, a Fortune analyst concluded that all the 280,000 Tesla cars that run on the road till 2017 end, consumed around 1.3 terawatt hours of energy for the year 2017. That entails that Bitcoin’s energy cost for the year 2017 was 29 times the power of all Tesla cars.
Looking into why the Bitcoin electricity ingestion is that high is the use of highly powered computers. These computers are used to generate the Bitcoin which involves a long cryptographic process followed by a complex puzzle. The computerized ledger is then used to tally the Bitcoins transaction and hence guaranteeing the security.
According to Morgan Stanley, the price for generating one Bitcoin is $3000 to $7000, which comprises all the expenses. The analysts still debate that there might be no relation between Bitcoin and electricity costs.