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- As per the data by Bitcoin Mining Council, 46% of miners were using efficient methods and power sources for cryptocurrencies mining by the last day of 2021. This indicates that Bitcoin mining now looks highly sustainable in energy consumption.
- Bitcoin mining technology’s efficiency has hiked by 9% since Q3 in 2021 – 19.3 petahashes per MW. While the data from Q4 of 2021 shows that the sustainable power mix utilized in cryptocurrency mining has reached 66.1%.
- Bitcoin is often criticized for its high energy consumption. The Cambridge Bitcoin Electricity Consumption Index shows Bitcoin mining uses 122.87 Terawatt-hours of electricity, more than that used by Argentina or the United Arab Emirates.
Bitcoin Mining Appears To Be Sustainable
Bitcoin Mining Council data shows that around 46% of miners were utilizing efficient power sources and methods for mining cryptocurrencies till the last day of the previous year. The data indicates that Bitcoin mining, contrary to previous criticisms, now appears highly sustainable in energy consumption.
According to the data acquired during Q4 of 2021, the viable power mix utilized in cryptocurrency mining has hit the mark of 66.1%. The efficiency of Bitcoin mining technology has increased up to 19.3 petahashes per MW – a 9% rise since Q3 in 2021.
MicroStrategy CEO Michael Saylor, who founded Bitcoin Mining Council alongside more than 12 reputable Bitcoin mining companies, believes this quarter continued to witness dramatic improvements in Bitcoin mining energy efficiency and sustainability because of the advances in semiconductor technology, the fast expansion of North American mining, the China Exodus and the global focus on sustainable energy and modern mining techniques.
Now, almost 77% of the Bitcoin mining hash rate is the contribution of BMC members. The latest report will look to present it as a reason for hindering its adoption and utilization.
One criticism that Bitcoin often gets is energy consumption; Bitcoin uses more electricity than the combined energy consumption by many countries. As the world moves towards climate change actions, some people demand the abolishment of cryptocurrency.
According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin mining uses 122.87 Terawatt-hours of electricity every year, more than Argentina, the Netherlands, or the United Arab Emirates.
Digiconomist’s data reveals that the digital asset uses 2,106.37 kilowatt-hours of electricity for a single transaction, which is equivalent to the amount of electricity utilized in an American household in around 72.2 days. As more people start using Bitcoin as a means of payment, energy consumption will further increase.
However, it is also unfair to judge an operation only on its total energy consumption without even considering other sources that cite how sustainable and green the operation uses.
CryptoAssests Shifting To POW To Reduce Energy Consumption
Crypto assets such as Ethereum are now transitioning to proof of stake protocol which earlier was utilizing proof of work; this will reduce the energy spent on creating new coins and transacting the crypto by 99.95%.
According to proponents, there could be a lot more done even if Bitcoin might not have the leisure to transition to a proof of stake protocol. This might include shifting more and more operations in areas with renewable energy.
Moreover, a good amount of Bitcoin mining farms at the time when it is produced in places in surplus help societies better utilize electricity.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
