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What is Bitcoin energy use and how does it affect network security?

Gemma Do
Gemma DoJanuary 21, 2026
Chains & Protocols
What is Bitcoin energy use and how does it affect network security?

Summary

Bitcoin consumes as much electricity as Thailand—211 TWh annually—sparking heated debates about environmental impact. But is this energy "waste" or the price of unbreakable security? How does Proof of Work convert raw electricity into cryptographic protection? And with hash rates hitting record 1.12 billion TH/s, can Bitcoin transition to greener energy without compromising its thermodynamic shield?

Bitcoin consumes approximately 211.58 terawatt-hours (TWh) of electricity annually as of late 2025, equivalent to 0.83% of global electricity consumption—comparable to countries like Thailand or Vietnam. This energy powers the Proof of Work (PoW) consensus mechanism, which directly converts electrical energy into network security by making attacks prohibitively expensive.

The network's hash rate reached a record 1.12 billion TH/s in late 2025, with mining difficulty hitting 136.04 trillion TH/s. This computational work requires approximately 209 megawatt-hours (MWh) to mine a single Bitcoin. The energy consumption is not a bug but a fundamental security feature: the higher the energy cost, the more expensive it becomes for any single party to attack or control the network. This "thermodynamic shield" ensures Bitcoin remains the world's most secure decentralized financial network, valued at approximately $2.3 trillion.

This article provides you with concrete data on Bitcoin energy consumption and explains how it relates to network security through a fundamental view of a crypto researcher.

How much energy does Bitcoin actually use?

By September 2025, the Bitcoin network’s energy demand has reached levels that rival those of mid-sized industrialized nations. Data from the Cambridge Centre for Alternative Finance (CCAF) indicates that the network consumes approximately 211.58 terawatt-hours (TWh) annually. 

Bitcoin Energy Consumption. Source: Bitcoin Energy Consumption
Bitcoin Energy Consumption. Source: Bitcoin Energy Consumption

This represents roughly 0.83% of total global electricity consumption, placing Bitcoin’s power requirements in the same tier as countries like Thailand or Vietnam. Other tracking indices, such as the Digiconomist Bitcoin Energy Consumption Index, suggest a slightly lower annualized figure of 204.44 TWh, though they emphasize the extreme carbon and water intensity associated with this usage.   

Read next: What Is Bitcoin and How Does It Work?

What does Bitcoin energy use look like in comparison to countries and industries?

To evaluate the impact of Bitcoin's energy use, it must be compared to other large-scale industrial and financial sectors. Traditional banking and gold mining provide the most relevant analogs.

Let’s look at the table below to see exactly how Bitcoin energy use compares to other large-scale industrial and financial sectors (data collected from Cambridge Digital Mining Industry Report April 2025). 

Industry or Entity

Annualized Electricity Consumption (TWh)

Percent of Global Electricity (%)

Global Banking Sector258.85 - 263.72~1.00%
Gold Mining & Processing240.61~0.94%
Bitcoin Network (2025)211.580.83%
Global Data Centers (excluding crypto)200.00 - 415.000.80% - 1.50%
Iron and Steel Industry1,233.004.80%
Air Conditioning (Global)2,199.008.60%
Google12.00<0.05%
Facebook5.00<0.05%

When looking at these figures, one interesting thing to note is that the traditional banking sector's energy data is compromised by data centers (estimated at 225.45 TWh), physical bank branches (22.68 TWh), independent ATM networks (2.91 TWh), and card networks such as VISA (7.81 TWh). 

Meanwhile, Bitcoin’s energy consumption is concentrated entirely in the mining process, which serves the triple function of transaction verification, issuance, and security. 

Read next: Bitcoin Energy Use and Network Security

Why does Bitcoin consume so much energy? Network Security

The security of the Bitcoin network is an emergent property of the competition between miners to solve the PoW puzzle. This competition ensures that the cost of rewriting the blockchain history is tied to the physical cost of energy and hardware. As of late 2025, the network's security reached unprecedented levels.

What is Bitcoin mining?

Bitcoin mining ASICs. Source: Financial Horse.
Bitcoin mining ASICs. Source: Financial Horse.

Bitcoin mining is the process by which new bitcoins are created, and new transactions are added to the blockchain. Miners use powerful, specialized computers called ASICs (Application-Specific Integrated Circuits) to solve a complex mathematical puzzle for a certain amount of newly created Bitcoin and transaction fees. The more powerful the ASICs are, the more hash rate they can provide, meaning there are more chances for valuable rewards.

Read more: Bitcoin vs Fiat Money the differences

Hash Rate and Mining Difficulty Records

According to Bitinfocharts, in late 2025, the total hash rate hit a record 1.12 billion TH/s, a massive increase in the computational work required to participate in the consensus process. Therefore, the mining difficulty reached a record high of 136.04 trillion TH/s. As mining difficulty rises, the energy required to mine a single Bitcoin increases, making it very hard for one party to acquire the control of the network – or compromising Bitcoin security.

Bitcoin difficulty chart. Source: Coinwarz
Bitcoin difficulty chart. Source: Coinwarz

By 2025, energy consumption to mine a single Bitcoin is estimated at approximately 209 MWh per coin. 

This analysis is published by CryptoThreads, a research-driven publication focused on explaining complex crypto and financial systems through data, history, and first-principles thinking rather than headlines or hype. The platform aims to bridge the gap between technical infrastructure and real-world understanding, helping readers evaluate blockchain networks based on measurable fundamentals.

The article is written by Gemma Do, whose work centers on the intersection of blockchain security, economic incentives, and energy systems. Her research-oriented approach emphasizes how protocol design choices translate into real-world costs, trade-offs, and long-term sustainability, particularly in Proof of Work networks like Bitcoin.  

Conclusion: The 2026 outlook and beyond for Bitcoin energy use and network security

2026 may witness the network's energy use transitioning to a greener energy mix is well-advanced, with sustainable sources providing most of the network's power. However, the absolute scale of consumption remains high, calling for continued innovation in methane capture, heat reuse, and hardware efficiency.

The long-term security of the network depends on the successful transition from a block-subsidy-driven model to a transaction-fee-driven model. While the "Digital Gold" narrative supports Bitcoin's value, the development of functional, high-volume on-chain use cases (like Ordinals or Layer-2 settlements) will be essential to fund the thermodynamic shield in the post-subsidy era.

Read next: Bitcoin vs Gold as a Store of Value

Ultimately, Bitcoin represents a new paradigm in the relationship between energy and trust. By anchoring its security in the physical cost of computation, the network has created a system that is resilient to digital manipulation.

Source: 

Disclaimer:The content published on Cryptothreads does not constitute financial, investment, legal, or tax advice. We are not financial advisors, and any opinions, analysis, or recommendations provided are purely informational. Cryptocurrency markets are highly volatile, and investing in digital assets carries substantial risk. Always conduct your own research and consult with a professional financial advisor before making any investment decisions. Cryptothreads is not liable for any financial losses or damages resulting from actions taken based on our content.
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FAQs (People also ask)

The environmental impact is significant but evolving. As of late 2025, the network consumes approximately 211 TWh annually and generates 114 Mt of CO2 emissions, comparable to mid-sized industrialized nations. However, the industry has become a leader in renewable adoption, with 52.4% of its energy now coming from sustainable sources like hydro, wind, and nuclear.

Gemma Do
WRITTEN BYGemma DoGemma Do is a Quant Trader and Trading Analyst who bridges intuition and algorithms to decode the markets. With a passion for turning numbers into narratives, Gemma specializes in crafting precise trading strategies, quantitative modeling, and insightful market analyses across crypto and traditional finance. Blending rigorous analytics with a trader’s instinct, Gemma has earned a reputation for demystifying complex market movements, helping traders navigate uncertainty with clarity and confidence. Her strategic insights consistently equip readers with the edge needed to thrive in dynamic trading environments.
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