Cypher
(BTC) Bitcoin News TodayCryptocurrencyCryptocurrency MiningNews

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.

Cypher

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 read:  Crypto Exchange Liquidity: What Is It And How Does It Work?

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.

📰 Also read:  JPMorgan Warns Adding Leverage into Bitcoin Markets to Cause Severe Deleveraging During Correction

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.


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  JPMorgan Warns Adding Leverage into Bitcoin Markets to Cause Severe Deleveraging During Correction

Cypher

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content