A study on energy cost calculations of Bitcoin

Bitcoin was first involved in 2008 as a new type of money and gained high values by becoming popular in a very short time. The energy demand for mining facilities to produce Bitcoin has reached the energy demand of many countries in a short time. In time, this energy use caused to sustainability, environment and health problems. Besides, it is seen that there is a relationship between Bitcoin energy costs and Bitcoin price. The aim of this study is to try to calculate the energy costs of Bitcoin and analyze its possible relationship between Bitcoin prices. Bitcoin energy costs is calculated by using the Hayes' (2017) work as a base and presented with the Bitcoin prices as time sequences in the frequency of 3 days. The relationship between these time sequences are represented by making graphical analyses. As a result, it is observed that the Bitcoin energy costs can be calculated, when Bitcoin energy costs are considered producing Bitcoin is not always profitable and in time Bitcoin price and Bitcoin energy costs counterbalance each other. Another basic result of this study is that the desire of producing Bitcoin by the miners is related with Bitcoin price increases.