- Cambridge University revises Bitcoin energy consumption estimates, showing lower figures.
- Initial overestimations attributed to outdated methodology and evolving mining hardware.
- Current estimate for 2023 suggests Bitcoin consumes 70.4 TWh of energy.
Cambridge University’s Bitcoin Electricity Consumption Index (CBECI) has undergone a significant update after three years, resulting in substantial revisions to previous energy consumption estimates for Bitcoin mining.
Initial estimates suggested Bitcoin’s energy consumption to be around 104 terawatt-hours (TWh) in 2021, but the revised estimate stands at 89.0 TWh, marking a noteworthy reduction. Similarly, the 2022 estimate was adjusted down by 9.8 TWh, from 105.3 TWh to 95.5 TWh, roughly equivalent to the energy usage of U.S. tumble dryers.
The previous methodology assumed that any “profitable” hardware introduced over the previous five years contributed equally to the network’s hashrate. However, this approach showed its limitations after China’s mining restrictions in 2021.
Alexander Neumueller, the report’s author, attributed the overestimation to not accounting for the increasing efficiency and power of Application Specific Integrated Circuits (ASIC) hardware used in mining.
While the updated methodology factored in recent hardware developments, Neumueller acknowledged the presence of certain assumptions and simplifications.
Despite these considerations, Cambridge’s updated index now provides a more accurate insight into Bitcoin’s energy consumption. The current estimate for 2023 stands at 70.4 TWh, according to the university.
This revised data underscores the importance of periodically reevaluating energy consumption figures within the cryptocurrency ecosystem. Thus, shedding new light on Bitcoin’s environmental impact.
Responses to the post show nothing but admiration and pride for the growth and improvements to Bitcoin mining power. Moving towards a greener initiative is nothing but good news for the crypto sphere. Perhaps we will see more improved innovation as we head into the future. After all, with countries like El Salvador incorporating crypto and Bitcoin into their educational curriculum, it is inevitable.
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