A Comprehensive Review of Bitcoin’s Energy Consumption and Its Environmental Implications

Bitcoin, which has the highest net worth among cryptocurrencies and the most significant transaction volume, has an immense prospect in terms of economic cost, rapid processing, and minimal risk, even while driving significant worldwide transformation and disruption. Since cryptocurrencies and Bitcoin are new, have an uncertain legal status, and bear the possibility of being engaged in illicit behaviour, there is the opportunity for their usage as a highly unpredictable and impulsive investment instrument with environmental consequences. This research studies Bitcoin mining and blockchain technologies, as well as Bitcoin's high energy consumption and environmental impacts. This study signifies the process used to calculate bitcoin’s energy consumption. We discuss the two prominent models (a) Model-1 by Christian Stoll, Lena Klaaßen, and Ulrich Gallersdörfer, and (b) Model-2—The CBECI model used to determine the energy consumption meant for mining bitcoins. The findings suggest that the power needed by bitcoin mining has detrimental ecological and social effects, such as causing global warming and climate change. Further, this study also forecasts the future of bitcoin mining and its influence on sustainability.