IT infrastructure is one of the largest energy users worldwide. Its yearly energy consumption is estimated to be 416 TWh3, of which 29 TWh are consumed by the mining of bitcoin4 and 10 TWh are used by Ethereum5. This equals 0.18% of the worldwide power consumption.

Over the last few months alone, the Bitcoin Energy Consumption Index has increased by 30%. If bitcoin energy consumption continues to grow at such rates — and no suitable optimization measures are taken — by 2020, bitcoin mining would exceed global electricity consumption by 21 TWh. Even under slower growth rates, the impact on the global electricity market is severe. China, for instance, has recently ordered the closing of its bitcoin mining operations because they impair the supply of local electricity.

Regardless of the situation in China, mining costs are rising globally. In 2017, average costs are estimated to have quadrupled. The mining market is a global business, whereby more than 80% of the mining is done by Chinese-owned businesses. The second largest provider is the Czech Republic with a market share of about 10%. The industry is in an «arms race» and the current crypto currency prices create incentives to add production capacity. There evidently is a need for alternative energy models for the mining of crypto currencies.