Artificial intelligence is set to overshadow Bitcoin’s energy footprint by the end of 2025, according to a new study that has caught the cryptocurrency world by surprise. Researchers warn that AI’s appetite for electricity could account for nearly half of all data center consumption, a development poised to shift the spotlight from Bitcoin’s much-debated environmental impact.
AI’s Growing Energy Demand
The study, which was conducted by a coalition of tech researchers and environmental scientists, paints a stark picture of AI’s burgeoning energy needs. As machine learning models become increasingly complex, the computational power required to support them grows exponentially. By December 2025, AI’s energy consumption is predicted to eclipse that of Bitcoin, a cryptocurrency notorious for its hefty carbon footprint.
Dr. Ellen Chang, a data scientist who contributed to the study, notes, “The sheer scale of AI’s energy consumption is unprecedented. We’ve seen a rapid escalation that mirrors—and will soon surpass—the energy usage patterns that have made Bitcoin a target for environmentalists.”
Turning the Spotlight Away from Bitcoin
For years, Bitcoin has been the poster child for critics of energy-intensive blockchain technologies. Its proof-of-work algorithm demands significant computational resources, leading to concerns over its sustainability. However, if AI’s energy consumption continues on its current trajectory, Bitcoin might find itself in a less contentious position.
Industry insiders believe this shift could have far-reaching consequences. “If AI continues to consume energy at this rate, policymakers may need to reassess which technologies pose the greatest environmental risks,” suggests Jonathan Meyers, a blockchain analyst. “This could potentially deflect some of the regulatory pressures away from Bitcoin and other cryptocurrencies.”
Implications for the Crypto Market
The potential for AI to become the primary focus of environmental scrutiny raises intriguing questions for the cryptocurrency market. Some experts speculate that this could lead to a renewed interest in more sustainable blockchain solutions. Ethereum, for instance, has already made strides with its transition to a proof-of-stake model, significantly reducing its energy consumption.
Moreover, platforms like Cardano and Solana, which boast lower energy footprints, might attract more attention as investors and developers seek greener alternatives. The narrative around sustainability in crypto is evolving, and with AI’s energy demands looming large, the pressure to innovate might intensify. This shift is also evident in the rise of AI-driven blockchain projects, as discussed in AI Crypto Agents Are Ushering in a New Era of ‘DeFAI’.
Looking Ahead
As we move forward into the latter half of 2025, the tech industry will need to grapple with the burgeoning energy demands of AI. The study’s findings underscore the importance of developing more efficient algorithms and investing in renewable energy sources to power data centers sustainably. This challenge is mirrored in the legal sector, where AI is making waves, as highlighted in AI-Powered Court System Is Coming to Crypto With GenLayer.
Yet, questions remain about whether the industry can keep pace with AI’s rapid growth. Will advancements in energy efficiency outstrip the rising tide of AI’s computational needs? Or will we witness a new era where AI, like Bitcoin before it, becomes the focal point of environmental debate?
The answers are still unfolding, but one thing is clear: the conversation about energy consumption in technology is far from over. With AI poised to take center stage, the tech community must prepare for the challenges and opportunities that lie ahead.
Source
This article is based on: AI’s Power Consumption Will Dwarf Bitcoin by Year’s End, Says Study
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
