Bitcoin Electricity Consumption Index released by Cambridge

The Cambridge Alternative Funding Center (CCAF) has launched the Bitcoin Electricity Consumption Index (CBECI). The goal is to provide impartial and accurate data in real time to clarify the real situation of the energy constellation for cryptomonas mining.

Diverse opinions on bitcoin mining

Over time, many more or less objective analyzes of Bitcoin’s electricity consumption have been published.

Some, like Digiconomist, claim that the Bitcoin mining uses more electricity than Switzerland or Ireland. Others, such as Coinshares’ analysis, claim that for the most part, miners use renewable energy because they are cheaper.

The problem with these estimates is that they are largely based on assumptions. The Cambridge University project wants to clarify as much as possible the real situation.

Is Bitcoin Mining Profitable?

With the rise in price, the Bitcoin mining has also become profitable in Romania. I stood by vb with Adrian Pop, BlockChain Hosting CEO who concluded:

It is quite difficult to make an average of current consumption because the price of electricity varies depending on the area around the globe. At the moment, Bitcoin is profitable everywhere. Of course, the difference is the area where you are going and the type of technology you use. Equally important is the optimization of miners and existing expenditures.

Predictors based on type of mining equipment

The CBECI study takes into account the network’s hash rate, the electricity price and the types of mining hardware available. Miner’s efficiency varies significantly, so the final calculation includes three versions:

• the most effective scenario
• the least efficient
• estimated average value

For example, Romania’s annual electricity consumption is about 50 TW / H, while the Bitcoin network consumes approximately 53 TW / H estimated.

comparisons

The CBECI website has released Bitcoin’s Energy Consumption Index and makes some interesting comparisons – for example, the amount of electricity consumed each year by inactive US household appliances could feed the Bitcoin network for 4 years. Also, the electricity used by all EU water boilers can support Bitcoin for 1.5 years.

The conclusion is that, although it is not the most efficient energy system, the Bitcoin network is not yet the ecological disaster proclaimed by critics.