The Cambridge Centre for Alternative Finance (CCAF) revises its Bitcoin electricity consumption estimates
- Daniel Batten, a prominent climate activist and Bitcoin environmental analyst, confirms the accuracy of the revised estimates
- The CCAF model overestimated BTC energy demand by 16.8% in 2021 and 10.2% in 2022
- CCAF debunks Greenpeace USA’s claim that Bitcoin uses as much energy as Sweden
- CCAF’s new estimates equate Bitcoin’s energy use to “tumble dryers in the US”
- CCAF’s emissions estimates are still overestimated by 67.6% due to outdated calculations
The reasons behind the discrepancies in the previous model
- The assumption that every profitable hardware model released less than 5 years ago fueled the total network hashrate led to overrepresentation of older devices
- Newer equipment was found to be underrepresented, resulting in revised estimates for 2021 and 2022
The tide has turned in the narrative around Bitcoin and energy
- Acknowledgments from Cambridge, academic papers, and a KPMG report give Bitcoin a positive ESG rating
- Misinformation still persists from outlets like the NY Times and Greenpeace USA
- There is work to be done in educating the public about Bitcoin’s energy consumption
Hot Take: The process has begun, and the tide has turned
The revised estimates from the Cambridge Centre for Alternative Finance (CCAF) provide a more accurate assessment of Bitcoin’s electricity consumption. The overestimations from their previous model have been corrected, debunking claims that Bitcoin uses as much energy as Sweden. However, there is still room for improvement in emissions estimates due to outdated calculations. The revised estimates signify a positive shift in the narrative around Bitcoin and energy, with acknowledgments from reputable sources and a positive ESG rating. While misinformation still exists, progress has been made in educating the public about Bitcoin’s energy consumption.
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