Bitcoin’s power demand drops 20% as it uses green energy

BTC's power demand drops 20% as it uses green energy

Bitcoin miners have switched to renewable energy in response to the widespread concerns about the cryptocurrency’s carbon footprint. Through this change, the network’s energy consumption has decreased by around 20%.

Bitcoin’s Electricity Need Falls As Miners Turn to Renewables

According to the Cambridge Bitcoin Electricity Consumption Index, the worldwide Bitcoin hash rate dropped to 10.49 GW on August 9th. In May of last year, its daily usage increased to 15.80 GW.

In addition, the cryptocurrency industry’s electricity needs have been reducing since dropping by 21% at the start of 2022. As of August 8th, it was at 10.48 GW, down from approximately 13.29 GW on January 2nd.

In the meantime, it’s possible that the decline in Bitcoin’s price and mining profitability has lowered the energy required to keep the network operational. The use of renewable energy sources, however, increased dramatically.

Additionally, it is noteworthy to mention that in March, the US government disclosed that it was working on a regulation for BTC mining. The issue of power regulation in the industry and its impact on global warming could be resolved with this approach.

The White House has become involved in Bitcoin mining in part because of concerns over the industry’s alleged contribution to climate change. When exactly the government will implement the program is a mystery.

Quarter Two 2022 Bitcoin Mining Report from BMS

Moreover, as of the month of January, the BMS (Bitcoin Mining Council) report showed that more over 60% of the power used for BTC mining was from sustainable sources. A report from the Council for the second quarter of 2022 indicates that this pattern persisted until the month of August.

In addition, this demonstrates that crypto mining can be done sustainably when technological efficiency and renewable energy are combined. The Council found that Bitcoin mining consumed more than 59.5% of renewable energy worldwide in Q2.

There will be a six percent rise from the second quarter of 2021 to the second quarter of 2022. According to BMC, Bitcoin mining is one of the most environmentally friendly industries in the world.

The technological effectiveness of the BTC network also improved, by roughly 46%. It was roughly 14.4 EH per GW as of the second quarter of 2021. As of the second quarter of 2022, however, it has risen to more than 21.1 EH per GW.

Clearly, the Bitcoin network has expanded significantly if efficiency gains like these are any indication. Since this is the case, it should improve in efficacy over time.

BTC’s value fell in May due to the general collapse of the cryptocurrency market. Thus, Bitcoin mining became unprofitable in June of this year. When a result, it’s possible that the network’s energy consumption dropped as miners stopped their operations.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.