The Green Bitcoin Theory: How are Bitcoin, Electricity Consumption and Green Energy Related?

Development of the Bitcoin price and its volatility

Governments are regulating crypto assets

Architecture of Bitcoin and the importance of mining

Which mining companies will leave the network when the Bitcoin price decreases?

Figure 1: Distribution of mining companies according to their varying efficiency profiles
Figure 2: Example of a company that would cease operations due to losses when selling newly generated Bitcoins

Mining companies with access to low-cost electricity join the Bitcoin network

Which energy sources provide the lowest-cost electricity?

Figure 3: Breakdown of global renewables penetration in Bitcoin mining (Source: Bendiksen/Gibbons 2019)

Will the need for low-cost electricity sources drive R&D in efficient electricity provision?

Figure 4: Why could the incentive mechanisms in the Bitcoin network increase R&D investments in renewables?



  • Blockchain knowledge: We wrote a Medium article on how to acquire the necessary blockchain knowledge within a workload of 10 working days.
  • Our two blockchain books: We have edited two books on how blockchain will change our society (Amazon link) in general and the everything related to finance (Amazon link) in particular. Both books are available in print and for Kindle — currently in German and soon in English. The authors have been more than 20 well-known blockchain experts in startups, corporations and the government from Germany, Austria, Switzerland and Liechtenstein — all contributing their expertise to these two books.
Our two books: the first one on blockchain and the society and the second one on blockchain and finance




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Philipp Sandner

Philipp Sandner

Professor | Lecturer | Author | Investor | Frankfurt School Blockchain Center