BTC’s Power Demand Falls By 20% As It Shifts To Green Energy
Due to the numerous criticism of Bitcoin’s energy consumption, Bitcoin miners have turned to green energy sources. This move has dropped the power demand of the network by about 20%.
Electricity Demand Of Bitcoin Drops As Miners Embrace Green Energy
On August 9th, the Cambridge Bitcoin Electricity Consumption Index revealed that the global hash rate of Bitcoin has fallen to 10.49 GW. This was after it hit an ATH last May and used 15.80 GW daily.
Also, the electricity demand of the crypto has been declining after dropping by 21% at the beginning of 2022. It dropped from over 13.29 GW on January 2nd to 10.48 GW on August 8th.
Meanwhile, the fall in the price of Bitcoin and mining profitability might have reduced the power demand. However, there was also a considerable increase in the amount of green power used.
Furthermore, it is worthy to say that the US authority revealed in March that it was working on a policy for BTC mining. This policy would solve the problem of power regulation in the sector and the effect on climate change.
Also, the involvement of the White House in BTC mining is due to reports of excessive carbon emissions from the sector. It is uncertain when the government will introduce the policy.
The BMS’s Q2 2022 Report For Bitcoin Mining
Meanwhile, as of January, the BMS (Bitcoin Mining Council) report revealed that over 60% of the power used for BTC mining was from sustainable sources. This trend continued till August, according to the Council’s report for Q2 2022.
Also, this proves that technological efficiency and green energy can work together to achieve sustainability in crypto mining. According to the Council’s Q2 report, global BTC mining uses over 59.5% of sustainable power.
This is an increase of 6% in Q2 2022 compared to Q2 2021. The BMC report tagged Bitcoin mining as among the most sustainable sectors globally.
Additionally, the technological efficiency of the BTC network increased by about 46%. As of Q2 2021, it was about 14.4 EH per GW. However, as of Q2 2022, it has increased to over 21.1 EH per GW.
This efficiency gain shows that the Bitcoin network has grown tremendously. Hence, it is expected to become more efficient as time goes on.
In May, the cryptocurrency market crash caused BTC’s price to decline. As a result, Bitcoin mining was no longer profitable in June. This might have affected the power demand of the network as most miners stopped mining.
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