Cryptocurrency and the energy it takes to mine it has been a heated subject for years. As the subject continues to dominate, studies are shedding new light on the actual amounts of energy used in this rapidly growing industry. The Bitcoin Electricity Consumption Index (CBECI), an esteemed model developed by the Cambridge University’s Centre for Alternative Finance (CCAF), is an example of such a study. Its latest assessment has led to new findings and a significant adjustment to its original estimates.
The new scenes painted by CBECI proposes a more moderate view on Bitcoin’s energy appetite. Gone are the predictions of extravagant amounts, comparable to ALL tumble dryers worldwide. The significantly lower 89.0 terawatt-hours (TWh) estimate suggests that the Bitcoin network’s total energy consumption is aligning more with the US tumble dryer usage. And while these comparisons may carry a pinch of incredulity, they still highlight the overall reduction from the previous assumption of 104 TWh.
This fascinating paradigm shift has its roots in a key realization. CBECI researchers identified that their initial methodology mistakenly assumed the even contribution of all profitable hardware models released within the past five years. The reality is, older machines are being decommissioned at a quicker rate than previously anticipated.
Upon recognizing this, a wave of revisions followed. The Bitcoin energy consumption predictions for 2021 and 2022 have been significantly adjusted downwards. This has incited conversations amongst Bitcoin enthusiasts over the true extent of the energy requirements of this intrigue-filled industry.
People like Daniel Batten, a well-versed individual on Bitcoin mining’s energy usage, have drawn attention to this noteworthy finding. Stating that sensationalist claims about Bitcoin using “as much energy as Sweden” have effectively been debunked. Batten did express a scepticism, though, towards the data that the model relies on, asserting that the figures surrounding greenhouse gas emissions are still exaggerated.
The most recent CBECI reevaluations have indeed transformed the narrative around Bitcoin’s energy consumption. However, the query remains if these new estimates truly capture the complex nature of Bitcoin mining’s global energy use, let alone the wider cryptocurrency mining sector. Similarly, questions around the accuracy of greenhouse gas emissions data persist. Nevertheless, the reduction in the perceived energy footprint of Bitcoin mining sets an encouraging precedent for cryptocurrency’s role in a more sustainable future.
Source: Cryptonews
