Bitcoin

The <a href="https://ultramining.com/news/en/revolution-in-bitcoin-mining-efficiency-skyrockets-defying-energy-consumption-fears/" rel="noopener noreferrer nofollow">University of Cambridge</a> recently updated its Cambridge Bitcoin <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/" rel="noopener noreferrer nofollow">Electricity</a> Consumption Index (CBECI) to reflect the evolving landscape of <a href="https://ultramining.com/news/en/terawulf-reveals-impact-of-location-on-energy-costs-for-bitcoin-mining/" rel="noopener noreferrer nofollow">Bitcoin mining</a>. This index estimates the global power consumption due to <a href="https://ultramining.com/news/en/terawulf-reveals-impact-of-location-on-energy-costs-for-bitcoin-mining/" rel="noopener noreferrer nofollow">Bitcoin mining</a> and maps its distribution across countries. The latest data puts the annual consumption between 67 and 204 TeraWatt Hours (TWh), with a more precise figure at 113.22 TWh. For context, this exceeds the energy usage of the Netherlands but falls short of Argentina or Norway, according to <a href="https://en.cryptonomist.ch/2023/08/31/cambridge-bitcoin-mining-hashrate-increase/" rel="noopener noreferrer nofollow">cryptonomist</a>. 
Why the change? It's mainly due to the surge in Bitcoin's <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a>, which hit an all-time high just a few days ago. Higher <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a> usually signals more energy consumption. Interestingly, the index reveals that Bitcoin's current energy consumption is close to its absolute high of 116.30 TWh in February 2022. This increase is notable given that Bitcoin’s price hasn't yet approached its previous peak of $69,000. 
One might expect that rising energy consumption would directly correlate with the market value of Bitcoin, but that's not strictly the case. While <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">Bitcoin's price</a> can shift rapidly, changes in energy consumption and <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a> occur more gradually. For example, Bitcoin's peak consumption came three months after its price peak, and the <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a> peak almost two years later. 
The data also touched on the carbon footprint. Annual estimates range from 2 to 114 million tons of CO2 equivalent (MtCO2e), with the exact figure standing at 57.37 MtCO2e. This is higher than Mongolia's emissions but lower than Botswana's. Remarkably, this accounts for only 0.12% of the world’s total CO2 emissions. The reason? Bitcoin primarily consumes <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/" rel="noopener noreferrer nofollow">electricity</a>, often from cleaner sources like hydroelectric or solar plants. 
Over the last four years, Bitcoin's <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a> has quadrupled, while its energy consumption has not even doubled. At the same time, the price has tripled. This disparity arises from technological advancements in mining efficiency and the 2020 <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a> of Bitcoin rewards for miners. 
In summary, Cambridge's revamped index captures the complex relationship between <a href="https://ultramining.com/news/en/terawulf-reveals-impact-of-location-on-energy-costs-for-bitcoin-mining/" rel="noopener noreferrer nofollow">Bitcoin mining</a>, energy consumption, and environmental impact. It’s a vital tool for understanding how this digital gold rush is taxing our planet's resources. 
Subscribe to our Telegram <a href="https://t.me/ultraminingcom" rel="noopener noreferrer nofollow">channel</a>! Only the most interesting stuff there

Bitcoin Mining’s Appetite for Energy Surpasses Netherlands, Signals Hashrate Boom

Ultramining_Eng

Other articles published on Aug 31, 2023

Yearn Community Approved the "Launch v3 Proposal"

Judge Dismisses Uniswap Lawsuit; Describes ETH a Commodity

BingX BTCUSDT scored industry lowest Slippage after Advanced Perpetual Futures Upgrades

City University Ajman and Ajman Municipality Collaborate in Empowering Human Resources through We...

🔥opBNB — New Vote on Roobee DAO!

Swift and Chainlink Collaborate to Foster Interoperability for Tokenized Asset Markets

Join our free newsletter for daily crypto updates!