Cambridge University Study Reports Surprising Facts On Bitcoin Mining

Researchers at Cambridge University released an update to their report on Bitcoin mining, unveiling the intricate evolution of mining hardware and providing fresh insights into the electricity consumption. The study, conducted by the Cambridge Bitcoin Electricity Consumption Index (CBECI) team, addresses growing concerns about Bitcoin’s environmental impact and the need for accurate, data-driven insights.

As the global adoption of Bitcoin has increased, mining activities have surged across the globe. The environmentalists have ignited debates on energy-intensive nature and environmental consequences of mining. To bring clarity to the complex issue, Cambridge University launched CBECI in 2019. Initially, it focused on electricity consumption, but the researchers realized a more comprehensive approach was needed. In 2020, they integrated the Mining Map to analyze the geographic distribution of mining, a crucial factor in understanding Bitcoin’s climate impact.

Also Read: Bitcoin Whales Add $1.5 Billion Worth of BTC In Last Two Weeks

Evolution of Bitcoin Mining Hardware

The study uncovers the fascinating journey of Bitcoin mining hardware from its humble beginnings to its current state. Initially, miners used standard personal computers, relying on central processing units (CPUs). However, as Bitcoin price and competition grew, more efficient hardware became necessary. Graphics processing units (GPUs) took over in 2010, offering a six fold increase in efficiency.

The evolution in the mining hardware continued with field programmable gate arrays (FPGAs) in 2011 which later evolved into application-specific integrated circuits (ASICs) in 2012. ASICs were a game-changer due to their unmatched efficiency, thanks to smaller chip sizes.

Today, mining hardware has reached unprecedented levels of power and efficiency. Recent models, like the Bitmain, Antminer S19 XP, and MicroBT Whatsminer M53S++, boast hash rates that dwarf their predecessors. With time, the technological advancement has resulted in more profitable and longer-lasting devices, defying the earlier assumption of rapid obsolescence.

Energy Consumption Insights:

The study also presents eye-opening data on Bitcoin’s energy consumption. In 2022, the revised estimate reduced consumption to 95.5 TWh, equivalent to the electricity use of entire countries. The 2023 estimate stands at 70.4 TWh, showcasing the dynamic nature of Bitcoin mining energy needs.

To put things into perspective the energy consumption of Bitcoin Mining is comparable to the energy consumption of tumble dryers in the entire United States (108 TWh) and renewable energy curtailment in China (105 TWh). In the global perspective, this adjustment represented approximately 0.38% of the world’s total electricity consumption.

The study by Cambridge University shows the true energy consumption of Bitcoin Mining. With major companies adopting renewable energy sources to mine Bitcoin, the figures will only continue to drop. It’s time for the environmentalists to start finding other activities to boycott, because Bitcoin Mining is no longer the cause for global warming.

Cambridge University’s research highlights the evolution of Bitcoin mining hardware and its impact on energy consumption. The industry has come a long way, with current devices vastly outperforming their predecessors. The study by Cambridge University highlights the need for ongoing research in the crypto industry as technology continues to evolve.

Also Read: Bitcoin Whales Add $1.5 Billion Worth of BTC In Last Two Weeks