Cambridge researchers working behind the widely-acknowledged Cambridge Bitcoin Electricity Consumption Index (CBECI) have updated the method of the index, in order to reflect a more accurate estimate of Bitcoin’s electricity consumption. The update was necessitated due to considerations of recent developments in Bitcoin mining hardware and hash rate.
Since its initiation in 2019, the CBECI has been a reputable source for analyzing Bitcoin’s resource-intensive nature and associated environmental impact. The objective of these adjustments is to present a more digestible account of Bitcoin’s power consumption to lay entities.
The revision of the CBECI’s methodology has brought to light the challenge of accurately assessing the types of hardware used by miners, due to the paucity of hardware-related data. This proved to be a notable obstacle, as it dictates the accuracy of the index.
It was observed that previously, when the mining periods were exceptionally profitable, the methodology assumed a large number of older mining hardware compared to newer models. However, fresh data reveals that recently released equipment, which is still in its life cycle, is underrepresented.
This realization brought about the change in methodology. Hashrate increases were compared with United States import data reflecting recent Bitcoin mining hardware deliveries, and a public examination of sales data from mining hardware manufacturer Canaan.
The results showed that the increase in the network’s hash rate could be due to the introduction of more recently released mining hardware. This information was based chiefly on US import data. Nonetheless, a dichotomy of views was surfaced regarding Bitcoin’s environmental impact.
On one hand, there were apprehensions of jeopardizing environmental advancements and intensifying climate change. But supporters highlighted the potential benefits the mining industry could offer, including mitigating climate change.
The intricacies of the industry and the lack of pivotal information often go unnoticed, paving the way for cherry-picked data points and biased perspectives. The new method of the CBECI includes a broad spectrum of robust data points and visualizations, reflecting the geographical distribution of Bitcoin’s mining hash rate along with a greenhouse gas emissions index.
These reports provide three varying estimates, forming a hypothetical range for these particular metrics. Though skepticism might be lingering due to the pressure of achieving an accurate analysis, the common consensus remains that a step has been taken towards progress, in understanding the environmental effects of Bitcoin.
Source: Cointelegraph
