How much energy does mining Bitcoin take?

It is hard to determine the exact amount of energy needed to mine 1 Bitcoin. According to Digiconomist Energy Consumption Index, you need approximately 1,544 kWh to mine 1 Bitcoin. In terms of money, this is equivalent to $200 since the average cost per kWh in the US is 13 cents. The energy used by Bitcoin blockchain subsides and flows according to the number of linked miners, transaction volume, and the type of mining equipment. Generally, mining rewards are more worth than the energy used.

Generally, Bitcoin mining is more profitable than spot trading for investors interested in long-term BTC investment. However, mining consumes a lot of energy. The Digiconomist's Bitcoin Energy Consumption Index estimates that a single transaction consumes 1,449 kWh to complete - an equivalent of almost 50 days of power for an average US household. In monetary terms, the average cost per kWh in the US is 12 cents, meaning a Bitcoin transaction generates an energy bill of $173.

The ability to find low-cost electricity is often the most integral factor determining the mining activity's profitability. Since retail energy prices are substantially more than the kilowatt-hour rates of most mining activities, it has become unsustainable to mine BTC at home unless free or surplus electricity is available. As a result, mining has become primarily localized. Most mining pools run in locales with cheap electricity or abundant renewable energy sources.