Bitcoin (BTC) is 6% greener than a year ago

The Bitcoin Mining Council (BMC) has released its fifth quarterly report. The data relates to 45 miners representing more than 50% of the Bitcoin network.

Bitcoin goes green

The report tells us that Bitcoin Mining Council (BMC) miners currently use electricity that is 66.8% green energy.

The estimate for the entire Bitcoin network is lower, with likely 59.5% green power, up 6% from last year.

In all, the mining bitcoin consumes 0.15% of the world’s energy. That is 24 times less than air conditioning or nearly half as much as the gold mining industry. Its share in global CO2 emissions is 0.086%.

The progress, however, is dazzling. The energy efficiency of the Bitcoin network has increased by 46%, from 14.4 to 21.1 exahash per gigawatt in just one year. This efficiency has been multiplied by 58 in eight years and is now displayed at 47.4 J/TH.

As such, here is a very interesting graph unveiled by Fred Thiel, CEO of Marathon. You can see on the left the type of machines used globally to mine Bitcoin. On the right the projection for energy efficiency.

Estimated global hashrate distribution by Asic class Estimated average bitcoin network efficiency
BTC miners are forced to rapidly increase their energy efficiency to survive

Go here to appreciate the very telling graphs of the report. Here is what Michael Saylor said during the presentation:

“In the second quarter of 2022, the bitcoin network hashrate increased by 137% while energy consumption only increased by 63% [en glissement annuel], which gives us a 46% increase in energy efficiency. The latter has increased due to advances in semiconductor technology, the rapid expansion of mining in North America, the Chinese exodus, and the worldwide adoption of renewable energy and modern mines. »

Tall in Texas

Part of the presentation was dedicated to Texas, a benevolent state towards miners who are seen as an asset through their purchases of electricity during off-peak hours. This money acts as a subsidy for renewable energy.

Except that miners have to cease their operations during peaks in demand. No problemo for the CEO of Argo who does not hide that “sixteen miners were forced to return 1,000 megawatts to the grid this week”. Compare with the 86,000 megawatts consumed by Texas on a very hot day.

Indeed, the high temperatures push the Texans to air-condition, which explodes the price of electricity. The price of MW/h can go up to $5,000 according to the CEO of Riot Blockchain, the biggest Texan miner.

But since miners have a price for electricity fixed for the year, much lower than $5,000, they are encouraged to resell it rather than use it to mine bitcoin.

Very well. But what about the shortfall when BTC hits $100,000? Not to mention the overall increase in the price of the joule. And in particular the gas joule:

For Sébastien Gouspillou, the CEO of Big Block (first French miner), the fact that 11% of the hashrate is in Texas “Risk of not lasting”. The price of gas pumped at the same time as Shale oil “will eventually increase”does he have to declare at the microphone of BFM Crypto.

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Avatar Nicolas Teterel

Nicolas Teterel

Journalist reporting on the Bitcoin revolution. My solicited papers of bitcoin through geopolitical, economic and libertarian prisms.

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