Bitcoin’s energy efficiency is a subject that has raised concern in the past due to the high electricity consumption of its mining activities. A significant amount of this electricity consumption is attributed to the high-energy guzzling mining machines often employed in the Bitcoin network. Still, new data from Coinmetrics suggests a drastic improvement in Bitcoin’s energy efficiency over the last five years.
Coinmetrics’ analysis reveals that three mining rig models, namely, Antminer S19j Pro, Antminer S19 XP, and Antminer A19, collectively command a whopping 76% of the network’s hash power. The most significant contributors of these three models being the Antminer S19j Pro, with 34.3%, and the Antminer S19 XP, covering 28.1% of the hash power.
The Bitcoin network’s energy efficiency has seen an improvement of about 60% since July 2018, driven primarily by improved, more efficient mining systems. For instance, the Bitcoin network now consumes an average of 33.6 joules per tetrahash (J/TH) of computing power, marking a substantial increase from the 89.3 J/TH recorded in July 2018. Noteworthy is the fact that the rate of change in Bitcoin’s energy consumption has been more pronounced in recent years than ever before.
While it offers reassurance about the network’s commitment to reducing energy consumption, the Bitcoin network’s high energy drain remains a point of concern for many environmentalists. Its dependence on a proof-of-work consensus mechanism means it requires advanced hardware and significant amounts of electricity, a set-up viewed by some as harmful to the environment.
Therefore, it comes as welcome news that Bitcoin miners are gravitating towards more sustainable, green energy sources. In fact, a recent CoinShares study found that 74.1% of Bitcoin’s mining power now comes from renewable energy.
In the latest move to mitigate energy concerns, a Volcano Energy project in El Salvador is building a 241 MW renewable energy power generation park. The project has secured initial funding of $250 million and is expected to have a total commitment of $1 billion. Among its investors is Tether, the issuer of the USDT stablecoin, the company plans to offer its expertise to help the project’s smooth progression.
As Bitcoin continues to evolve, one thing is clear; the strive for energy efficiency and environmental compatibility is at the forefront. The shift to renewable energy is not only a nod to the global green movement but is becoming a vital part of Bitcoin’s future.
Source: Cryptonews
