Bitcoin mining consumes the same amount of energy as Switzerland’s hydropower industry
July 1, 2026
New research indicates that the energy consumption associated with bitcoin mining operations may be even higher than previously thought. The redundant mining processes and fierce competition among miners lead to significant energy waste in these operations. A recent study, published in the journal PNAS Nexus on May 26, aimed to address these inefficiencies by developing a theoretical model to analyze the networks supporting the bitcoin distributed ledger system.
In 2025 alone, an estimated 16,000 megawatts of energy were squandered due to unsuccessful bitcoin mining attempts, where competing miners dedicate substantial computational resources to secure the same bitcoins. This amount of wasted energy is roughly equivalent to the entire generation capacity of Switzerland’s numerous hydropower plants. It’s important to distinguish this figure from the total energy consumed by bitcoin mining activities, which researchers estimated at 138 terawatt-hours annually as of June 2024. This consumption level exceeds the annual energy usage of several developed countries, including Norway and the Netherlands.
The environmental impact of bitcoin and similar proof-of-work blockchain technologies has raised concerns in recent years. For instance, in 2021, the water consumption in bitcoin mining operations, especially for cooling systems, surpassed the domestic water usage of 300 million people in rural sub-Saharan Africa, according to a 2023 report by the United Nations. Bitcoin operates on a blockchain system that relies on a proof-of-work model. To validate a new bitcoin transaction, computational power must be utilized to solve complex puzzles. The entity that successfully solves the puzzle first earns a set amount of bitcoin as a reward and adds a new block of transactions to the blockchain.
Addressing the energy inefficiencies in bitcoin mining is crucial, given the substantial environmental impact and resource consumption associated with these operations. Researchers are exploring ways to optimize mining processes, reduce energy waste, and enhance the sustainability of cryptocurrency technologies.Efforts to enhance the sustainability and efficiency of bitcoin mining operations are imperative to mitigate the environmental impact of these processes. Researchers and industry experts are actively seeking solutions to reduce energy waste and promote eco-friendly practices within the cryptocurrency sector.
