He has also been following the situation for years and publishes his research on Digiconomist's Bitcoin Energy Consumption Index. The blog is best known for featuring the Bitcoin Energy Consumption Index since late 2016, which has played a major role in the global discussion regarding the sustainability of proof-of-work-based blockchains. Data from the research group was released earlier this week and reflects an interesting year for the Bitcoin mining ecosystems power consumption. Let’s walk through some of its major implications, at least as the situation stands at press time. When Bitcoin is classed as a country, it ranks 30 th in the world, consuming almost 0.5% of the world’s energy production. According to its data, Bitcoin uses 67.91 TWh annually which is just greater than Chile, ranked 40th in the world at 66 TWh. Note that the Index contains the aggregate of Bitcoin and Bitcoin Cash (other forks of the Bitcoin network are not included). The University of Cambridge tool models the economic lifetime of the world's Bitcoin miners. Every year, the world’s largest crypto network consumes close to 77.8 TWh according to Digiconomist’s Bitcoin Energy Consumption Index. According to the latest data from Digiconomist’s Bitcoin Energy Consumption Index, Bitcoin energy consumption has been at its highest historical […] While bitcoin and a variety of digital currencies have swelled in value, a number of critics have spread fear, uncertainty, and doubt (FUD) in regard to the energy consumption … Bitcoin mining’s energy consumption varies depending on the total network hashrate and the efficiency of each mining machine being used. The energy wasted by plugged-in but inactive home devices in the US alone could power bitcoin mining for 1.8 years, according to the Cambridge Bitcoin Electricity Consumption Index. Advertisement The Cambridge Bitcoin Electricity Consumption Index has however estimated Bitcoin’s annual power consumption to be 30% higher at 110.53 terawatts per hour (TWh), which is more than the energy consumption of the Netherlands for an entire year. Bitcoin is using around seven gigawatts of electricity, equal to 0.21% of the world's supply, according to an online tool's estimate, said BBC News. NEW: Study reveals Bitcoin’s electricity consumption is underestimated and finds the network “represents close to half of the current global data centre electricity use” (August 2020)." Digiconomist’s Bitcoin Consumption Index claims that the current estimated annual electricity consumption is over 30 TWh. The Bitcoin Energy Consumption Index provides a detailed look at the global energy consumption of the bitcoin network. The higher the price, the more energy used. The Digiconomist “Bitcoin Energy Consumption Index” is a commonly touted resource that many point to as being a key aggregator of stats pertaining to the Bitcoin network’s energy use. The paper, authored by data scientist Alex de Vries, who runs the Bitcoin Energy Consumption Index, examines the implications between what skyrocketing bitcoin prices could mean for energy use, and how high prices could, without regulation, lock the world in to years of increased mining, emissions, use of fossil fuels in areas with high security risks, and resource scarcity. According to a new report issued by the Bitcoin Energy Consumption Index, mining the asset now requires as much energy as what’s used to power countries such as Chile and New Zealand. On the landing page of the website, as well as an average network consumption estimate, there is an upper and lower bound estimate of Bitcoin energy use. Many people, when decrying Bitcoin’s energy footprint, point out its energy consumption and presume that someone, somewhere is being deprived of electricity because of this rapacious asset. Bitcoin energy consumption has increased to more than 75 TWh, making it the highest level since late 2020. The latest Bitcoin Energy Consumption Index from Digiconomist suggests that estimates may well be short of the actual power usage of the global mining network. You can check the index to get an instant look at the overall energy consumption of bitcoin, including the number of US households that could be powered by the bitcoin network, or the country that best matches the bitcoin network in terms of energy consumption. By far, the most frequently cited estimate in news media is the Bitcoin Energy Consumption Index (BECI), which uses a top-down approach that assumes miners spend (on average) 60% of their revenues on electricity at a rate of 0.05 USD/kWh. How much do Bitcoin miners make per day? tldr; The Cambridge Bitcoin Electricity Consumption Index (CBECI) estimates bitcoin’s annualized energy consumption to be around 127.48 terawatt-hours (TWh) per year. - How Bitcoin Energy Consumption Index - Digiconomist can Save You Time, Stress, and Money. Numerous headlines this month carry stark comparisons and to distill them all: "Bitcoin uses about as much energy as Switzerland." The author of the Bitcoin Energy Consumption Index makes fundamentally flawed assumptions, causing it to demonstrably overestimate the electricity consumption of Bitcoin miners by 1.5× to 2.8×, and likely by 2.2×.. BECI starts with calculating average mining revenues based on a 439-day (variable) moving average of the Bitcoin and Bitcoin Cash prices. That is the equivalent of around 0.14% of total global electricity consumption. Between 2016-19, energy intensity in Inner Mongolia rose by 9.5 per cent, while overall energy consumption grew by 65.62 million tonnes – 1.84 times of the five-year target. Mining rigs of a super computer are pictured inside the bitcoin factory 'Genesis Farming' near ... Reykjavik, on March 16, Bitcoin’s Energy Consumption Is A Highly Charged Debate – Who’s Right? In 2019, the crypto asset management and analysis firm published a report claiming that 74.1% of Bitcoin energy consumption comes from renewables, making Bitcoin "more renewables-driven than almost every other large-scale industry in the world. The establishment has created a dedicated monitoring resource for Bitcoin, which it has dubbed the Cambridge Bitcoin Electricity Consumption Index (CBECI). "The Bitcoin Energy Consumption Index provides the latest estimate of the total energy consumption of the Bitcoin network. A TeraWatt hour is a pretty big number and equates to 10 12 (1 followed by 12 zeros) watts per hour – which is a lot of energy. Based on statistics from 2016, Belgium uses 82.1 TWh, while Finland is just ahead with 82.8 TWh. The Philippines is the closest nation behind Bitcoin in terms of power usage, with 78.3 TWh. By generously assuming that Bitcoin’s energy consumption is currently ~150 TWh annually, this would amount to merely 0.1% of global energy consumption. The recent surge of Bitcoin (BTC) price has driven notable growth in the amount of electricity consumed by Bitcoin miners, spurring another wave of argument in the community over the ecology of the seminal cryptocurrency. The Bitcoin Energy Consumption Index was created to provide insight into this amount, and raise awareness on the unsustainability of the proof-of-work algorithm. Drop the price of energy, and all rational miners will just buy more hardware. 1/ Bitcoin’s energy consumption is not “wasteful.” – It is much more efficient than existing financial systems– No one has the moral authority to tell you what is a good or bad use of energy (ex: watching the Kardashians) Let's debunk this FUD — Dan Held (@danheld) January 18, 2021. The latest data estimated that the total energy consumption of the Bitcoin network is how much Chile consumes […] Bitcoin’s block reward system is designed so that the systems energy consumption costs are basically some percentage of the price of bitcoin. A handy comparison page shows that bitcoin represents 0.51 percent of global electricity production and 0.59 percent of total electricity consumption. This blog is a platform for research, dedicated to exposing the unintended consequences of digital trends. Updating every 30 seconds, the Cambridge Bitcoin Energy Consumption Index (CBECI) provides up-to-date data detailing how much electricity it takes to power the Bitcoin network. For example, producing 100 Eh/s with only the newest and most efficient ASICs would consume substantially less electricity than, say, 100 Eh/s with only ASICs from 2017 and earlier. This is according to the Bitcoin Energy Consumption Index, a scientific tool developed by Digiconomist’s founder Alex de Vries. That would see eight percent of the global Bitcoin mining hash rate forced to move elsewhere or shutter, according to data from Cambridge University's Bitcoin Electricity Consumption Index. Digiconomist estimates the consumption of electricity by Bitcoin Miners in its Bitcoin Energy Consumption Index (BEXI). Alex de Vries, a Dutch economist, created the Bitcoin Energy Consumption Index, one of the first systematic attempts to estimate the energy use of the bitcoin network. This is less than that of 28 countries, including Ukraine (27th) and Argentina (29th). The Bitcoin Energy Consumption Index (Footnote 1) currently estimates 78 TWh a year.