The latest report released by the Bitcoin Mining Council indicates that bitcoin mining has become 24% more efficient in the first half of this year.
Bitcoin Mining Council, the organization committed to promoting transparency and innovation in the Bitcoin network, has released a new report on the state of cryptocurrency mining.
While some organizations, such as Greenpeace, claim that the process of creating and validating transactions on the Bitcoin network is harmful to the environment, due to the energy-intensive nature of the network, others, such as the Bitcoin Mining Council, instead defend the energy consumption of the blockchain as a profitable investment that generates economic and social benefits.
In his last report, the Bitcoin Mining Council or BMC, highlighted that the industry of Bitcoin mining has become more efficient year after year.
According to their data, between July 2022 and June 2023, the blockchain’s hash rate increased by 70%. However, the network’s efficiency also improved, increasing by 24%. This is thanks to the combination of sustainable energy by mining farms and data centers and the deployment of optimized mining equipment with higher processing capacity and reduced energy consumption to mine bitcoins as effectively and sustainably as possible.
The report was presented with the aim of offering a clear idea of how the mining industry Bitcoin has improved its efficiency from the second half of 2022 to the present.
Bitcoin's environmental sustainability is strengthened
The BMC, a voluntary and open forum made up of MicroStrategy, Galaxy Digital and 43% of the companies that represent the global Bitcoin mining network, argues that blockchain has become More efficient and safer than ever.
Being 24% more energy efficient, the Bitcoin blockchain requires less energy to remain operational.
According to the BMC, in addition to the combination of sustainable energy and technological innovation, the geographic migration It is also a factor that is contributing to the improvement in the energy efficiency of the network.
Bitcoin miners have access to new sources of clean energy, such as geothermal energy In El Salvador, the solar and nuclear energy in the United States and hydroelectric power in Paraguay, among other locations, allowing them to more easily diversify the energy sources that power their facilities and equipment.
Increase the technological efficiency of the Bitcoin blockchain
Another key point that the BMC highlighted in its latest report on Bitcoin mining is the technological efficiency of miners. According to its data, this metric increased by 23,7% between the second half of 2022 and June of this year.
Technological efficiency refers to the amount of hashrate or computing power that can be obtained with a given energy consumption.
According to the report, the Bitcoin network went from generating 21,1 exahashes per gigawatt (EH/gw) in the second half of 2022 to 26,1 exahashes per gigawatt in the first half of 2023. This increase is due to the adoption of more advanced and efficient equipment by miners, as well as process optimization and new sources of sustainable energy.
On average, the BMC estimates that 59,9% of Bitcoin mining network is combining sustainable energy sources in your processes.
BTC miners contribute to energy stability
This year, the Bitcoin ecosystem has proven its resilience and strength in the face of the challenges of 2022. The mining industry quickly adapted to bearish market conditions, increasing its capacity, hashrate, and energy efficiency.
Bitfarm's mining director, Ben Gagnon, highlighted the adaptability of Bitcoin miners and their participation in energy demand response programs, which has allowed the blockchain network to reduce its energy consumption by 15% on average, in addition to contribute to the stabilization of the electrical grid in states like Texas (United States).
Based on the above data, the BMC claims that Bitcoin mining has become one of the greenest industries on the planet.
Bitcoin drives expansion of sustainable energy
Un study A statement by DLT Science Foundation Chief of Staff Juan Ignacio Ibáñez and Research Associate at the Centre for Blockchain Technologies at University College London Alexander Freier argues that Bitcoin mining has a positive impact as “a potential contributor to renewable energy penetration and net decarbonisation of the energy grid.”
ESG investor and CH4 Capital co-founder Daniel Batten noted on Twitter that the peer-reviewed study published by the researchers demonstrates how the narrative around Bitcoin's carbon footprint has been changing.
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