Bitcoin's energy consumption has decreased by about 14% since the beginning of 2022, according to data from the Bitcoin Consumption Index of the Centre for Alternative Finance at the University of Cambridge.
Although many Bitcoin mining companies have been expanding their facilities and increasing their mining power on the blockchain network, the energy consumption of the main cryptocurrency on the market has decreased considerably in the first six months of this year.
Bitcoin Energy Consumption Data
According to data from the Bitcoin Energy Consumption Index, prepared by the Centre for Alternative Finance at the University of Cambridge (CCAF), the network Bitcoin consumed 9,09 Terawatt-hours (TWh) of energy last June.
This figure, compared to the 10,56 TWh of energy that Bitcoin consumed in the month of January, represents a decrease in its energy consumption of 13,96% so far this year.
Source: CCAF
Earlier this month, Koibanx CEO Leo Elduayen commented during an interview with Digiconomist, that Bitcoin network energy consumption is not as high or serious as some think or they want us to believe.
Bitcoin consumes less than 0,1% of the world's energy
The cryptocurrency expert pointed out that it is not only Bitcoin that consumes energy. During the interview, he recalled that the traditional financial system also has an energy and environmental cost and that this remains higher than that of the blockchain network.
In addition to this, he highlighted the current growing trend among Bitcoin mining companies to look into green energy options, such as hydroelectric power and solar energy, to make their crypto mining operations more efficient and sustainable.
On the other hand, financial and energy expert Lyn Alden, analyst, strategist, electrical engineer and founder of Lyn Alden Investment Strategy, had also published an article explaining The why of the Bitcoin network's energy consumption.
In that article, published last December, Alden mentioned that the annualized energy consumption of the Bitcoin network, used by more than 100 million people in the world, was close to 140 Terawatt-hours (TWh) at that time.
However, although this consumption placed Bitcoin above some countries, such as Finland and Belgium, the blockchain network was still demanding less than 0,1% of all energy consumed worldwide, estimated at around 170.000 TWh of energy per year.
Currently, the Cambridge University's Bitcoin Energy Consumption Index indicates that the network Bitcoin is using about 85,7 TWh of energy per year.
Bitcoin miners migrate to new, more sustainable energy sources
Among the main reasons that are driving the decrease in Bitcoin's energy consumption are the recent drop in cryptocurrency prices on the market y the migration of mining companies towards new energy sources more sustainable.
Bitcoin miners are turning to cleaner energy to increase their efficiency and reduce their carbon footprint on the environment.
Although there is still a long way to go, miners like Blockstream, Block Inc. y Aspen Creek Digital Corporation exemplify this new reality. These companies are developing New Bitcoin mining centers powered entirely by clean energy.
In the case of Blockstream and Block Inc, both companies have joined forces with Tesla to create the first 100% solar-powered Bitcoin mining center in the state of Texas, United States. Meanwhile, Aspen Creek Digital Corporation has launched a new Bitcoin mining center also powered by solar and wind energy in the state of Colorado.
Thus, although Bitcoin's energy consumption has been debated and heavily criticized for several years, more BTC miners are now adopting renewable energy to power their operations in an environmentally sustainable way.
The Bitcoin Mining Council reported in its latest report that the use of green energy in Bitcoin mining had grown more than 60% in the last year, as reported by this media.
In addition to hydroelectric, solar and wind power, Bitcoin mining is looking towards other sustainable sources, such as geothermal energy and the utilization of waste gas from the oil industry.
Continue reading: Solar and volcanic energy: Bitcoin mining finds its green path
