Cryptocurrency Lovers Will Spend More Electricity Than All of Argentina

Cryptocurrency Lovers Will Spend More Electricity Than All of Argentina

In 2018, the need for electricity for all miners in the world may exceed energy consumption in Argentina.This opinion was expressed by analysts of financial company Morgan Stanley Nicholas Ashworth.

Investments in mining will grow

The analyst predicts that an overall indicator of electricity consumption by all the world's miners next year will be 140 terawatt-hours. It's 0.6 percent of global energy consumption and will exceed the results of Argentina.

Note that the population of Argentina is more than 43 million people.

By the end of last year, consumption had increased to 20.5 terawatt-hours, 15.4 of which were in China. For comparison, the analyst leads one of the world's largest mining companies BHP Billiton, which consumes 38 terawatt-hours.

If the cryptocurrencies continue to grow, we expect an increase in electricity consumption by the miners.

Ashworth believes that the consumption of electricity in such volumes is unlikely to cause a fall in utilities, but this trend shows the prospects of companies investing in wind energy and solar energy, as well as energy conservation, including NextEra Energy Inc., Iberdrola SA, and Enel SpA. Among the other beneficiaries are large oil companies investing in renewable energy sources and green energy producers who start their business from the ICO.

At the same time, the figures may frighten the governments of states. Recently, sources described the possible restriction of electricity consumption for miners in China. We hope this will not become a trend. In this case for the extraction of cryptocurrencies, you have to turn the pedals or buy solar panels.

Ashworth also believes that electric vehicles operated around the world may require this amount of electricity only in 2025.

Previously, it was predicted that, while maintaining the current dynamics of growth in electricity costs for mining bitcoins, by 2020, all electricity in the world will be spent on mining the cryptocurrency.

Information Source: Bloomberg