In recent years, Bitcoin’s energy efficiency has been subject to intensive scrutiny, with mining endeavors guzzling down vast quantities of electricity primarily due to the power-demanding machines utilized in the process. For instance, three predominant Bitcoin mining machinery: Antminer S19j Pro, Antminer S19 XP, and Antminer A19 – are responsible for around 76% of the Bitcoin network’s computational ability according to Coinmetrics’ newly published study.
Interestingly, data demonstrates a significant improvement in Bitcoin’s energy efficiency over the past five years. The above-mentioned Antminer models appear to be the preferable choice for miners since 2021 – with Antminer S19j Pro representing 34.3% and Antminer S19 constituting 28.1% of the total network hashrate. Conversely, Antminer S19 XP delineates a mere 13.7%. However, it’s not all one-sided, since the energy consumption and computational capacities of these machines vary greatly.
Prevailing perception points to Bitcoin’s energy inefficiency, sourced from the fact some mining equipment consume a disproportionate amount of energy relative to the lower hashrates they produce. Nevertheless, Coinmetrics reports highlight a noteworthy enhancement in Bitcoin network’s energy efficiency by about 60% since July 2018, due to the arrival of superior, more efficient machines. The researchers underline that the Bitcoin network now guzzles around 33.6 joules per tetrahash (J/TH) in terms of computational power, marking a 62% improvement in energy efficiency when compared to the 89.3 J/TH recorded on July 1, 2018.
In spite of positive advancements, some contest the evolution of Bitcoin’s energy consumption hasn’t been progressive enough. The Bitcoin network still drains 13.4 gigawatts (GW) of power, albeit 13% less than the frequently quoted Cambridge University Centre of Alternative Finance’s index.
Amidst growing environmental concerns over Bitcoin mining’s high energy consumption, a visible shift towards renewable energy sources is observed. Layered with the prevalent proof-of-work consensus powered by potent hardware and hefty electricity use, it’s imperative to seek ecologically sound alternatives. CoinShares’ recent research indicates that a substantial 74.1% of Bitcoin mining energy originates from renewable sources.
Exemplifying this critical trend, El Salvador-based startup, Volcano Energy, embarked on a project aiming to construct a 241 MW green energy power generation park, with an estimated budget of $1 billion. Despite being in its nascent stages, this initiative has attracted a $250 million investment round, bolstered by the likes of Tether. This marks an exciting era, where cryptocurrency innovation no longer stands at odds with environmental responsibility.
Source: Cryptonews
