Cambridge University Upgrades Bitcoin Mining Index for Accurate Power Analysis

Bitcoin Electricity Consumption Index (CBECI) Reveals Lower Global Energy Consumption for Bitcoin Mining

The Bitcoin Electricity Consumption Index (CBECI) developed by researchers at Cambridge University’s Centre for Alternative Finance (CCAF) has been upgraded to provide new insights into the energy consumption of Bitcoin mining worldwide. The upgraded estimate of global energy use by Bitcoin miners is now 89.0 terawatt-hours (TWh), significantly lower than the previous estimate of 104 TWh. This suggests that claims of Bitcoin using as much energy as Sweden are incorrect. The researchers attributed the previous overestimation to the assumption that older mining machines were still contributing to the total network hashrate. With the realization that older devices were being retired at a faster rate, adjustments were made to the energy consumption projections for 2021 and 2022.

Key Points:

The new estimate of global energy usage by Bitcoin miners is 89.0 TWh, lower than the previous estimate of 104 TWh.
The previous overestimation was due to the assumption that older mining machines were still contributing to the total network hashrate.
The adjusted numbers put the global energy usage of the Bitcoin network in the same range as tumble dryers in the US, debunking claims of it being equivalent to all tumble dryers globally.
The upgraded CBECI has been widely shared among the Bitcoin community, correcting misconceptions about Bitcoin’s energy consumption.
However, the greenhouse gas emissions data used in the model is still considered exaggerated, with emission intensity calculations being overestimated and outdated.

Hot Take:

The upgraded CBECI provides a more accurate assessment of Bitcoin mining’s energy consumption, debunking exaggerated claims about its environmental impact. While the new estimate is lower, there are still concerns about the accuracy of greenhouse gas emissions data used in the model. This highlights the need for ongoing research and transparency in assessing the environmental footprint of cryptocurrency mining.