Bitcoin energy consumption will decrease as it hits $100K, $500K, $2M by 2040, here’s why

According to an analysis by Arcane Research, future Bitcoin energy consumption depends heavily on the future Bitcoin (BTC) price. If the BTC price reaches $2 million by 2040, the energy consumption of Bitcoin could reach 894 TWh per year. However, if the BTC price reaches $500,000 by 2040, Bitcoin will only consume 223 TWh per year. That’s nearly double current energy consumption, despite a 20x surge in BTC price.

Bitcoin’s energy consumption is highly dependent on the BTC price

Jared Mellerud, an analyst at Arcane Research, shared data on Bitcoin’s energy consumption in 2040 and how the BTC price is massively influencing future energy consumption in a series of tweets on Aug. 23.

Bitcoin’s future energy consumption mainly depends on BTC price, transaction fees, percentage of miner earnings spent on energy and average energy price.

Bitcoin Estimated Energy Consumption 2022-2040. Source: Arcane Research

If the BTC price reaches $2 million by 2040, the energy consumption will be 894 TWh per year. This is a 10x increase from current levels. Also, Bitcoin could account for 0.36% of estimated global energy consumption in 2040, up from the current 0.05% share.

However, if bitcoin does not see a bullish rally and the price hits $500,000 due to bitcoin halving and positive developments by 2040. Then the energy consumption will be 223 TWh per year, slightly more than double the current level.

Interestingly, in a falling scenario, energy use will “halve to 45 TWh per year, or 0.02% of global energy use.” The price of Bitcoin (BTC) will reach at least $100,000 by 2040 due to the halving.

In addition, Bitcoin’s future energy consumption will also depend on transaction fees. At $100,000, energy consumption increases by 7 TWh for every additional 0.1 BTC in transaction fees per block.

Likewise, if the BTC price reaches $2 million by 2040 and transaction fees remain stable, Bitcoin’s share of global energy consumption will be 0.36%.

“A massive rise from today’s 0.05%, but still well below some bitcoin critics’ doomsday estimates.”

However, energy consumption will still be below the 2% share of energy consumption in the cement industry. Cement production consumes 4,238 TWh of global energy consumption.

Will BTC Price Reach Such High Levels?

Bitcoin (BTC) price reached an ATH of $68,789 amid massive acceptance. Currently, the price is trading in the $21,000-$25,000 range, but it is likely to rise due to the halving.

Bitcoin mining will not become a significant area of ​​energy consumption until the BTC price hits a few million dollars. BTC price depends on market demand while transaction fees depend on its use as a medium of exchange.

Spending 0.36% of energy on future technologies that provide safety, security, value and speed is more than worth it.

Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge of blockchain, cryptocurrencies, artificial intelligence and the Internet of Things. He has long been associated with the blockchain and cryptocurrency industry and is currently reporting on the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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