Bitcoin‘s price continues its lackluster performance, leaving altcoin investors pondering their avoidance of cash-ins. Despite short-term price movements being deemed insignificant, the contrast between the end of 2022 and January 2023 is stark, with patient investors reaping significant gains over the past year.
Setting aside price, it’s essential to consider more intrinsic aspects of life. In 2021, China’s mining bans, under the guise of environmental concerns, led to a race among U.S.-based mining companies to establish green energy-powered operations. Michael Saylor reported that green energy accounted for over 50% of BTC mining before the year ended.
The global electricity market faces transformative changes as the sector leads decarbonization and adapts to new consumption patterns. The International Energy Agency’s latest report highlights cryptocurrencies and artificial intelligence.
With expected growth in these two areas, energy consumption is projected to rise. The IEA’s 2024 report forecasts a global energy consumption increase, with China and India contributing significantly to this growth, expecting energy use to jump from 2.2% in 2023 to 3.4% by 2026.
By 2026, the IEA anticipates that energy consumption driven by AI and crypto will double, exceeding 1,000 terawatt-hours (TWh), with AI, particularly ChatGPT, predicted to use nearly 10 TWh annually. Bitcoin alone consumed 120 TWh out of the total 130 TWh used for crypto mining in 2023, an increase from 2022’s 110 TWh, and is expected to reach 160 TWh by 2026.