Michael Saylor: “Bitcoin consumes 25% less energy than a year ago”

The Bitcoin Mining Council (BMC) has released its fifth quarterly mining industry energy consumption report. mining of BTC. The Bitcoin network consumes 25% less energy today than a year ago.

Bitcoin runs 58% on renewable energy

The Bitcoin Mining Council (BMC) is a global forum open to all mining companies. mining of BTC. Its survey for the first quarter of 2022 focused on three parameters:

  • Electricity consumption;
  • Technological efficiency;
  • The renewable energy mix.

For the first time, the BMC was able to obtain data from 50% of the global network of BTC miners, or 100.9 exahash (EH) as of March 31, 2022. This shows that no other industry in the world (at the level worldwide) cannot claim to be so green.

BMC member miners consume on average 64.6% electricity from renewable energy sourcesagainst only 36.9% barely a year ago!

This figure drops to 58% globally. The margin of error is substantial given that the BMC assumes that the electricity mix of the second half of the miners is identical to that of the United States.

Overall, the energy consumption of Bitcoin accounts for 0.16% of global energy consumption. Or 246 TWh out of 154,750 TWh according to data from British Petroleum (BP).

The Bitcoin network is also responsible for 0.085% of global CO2 emissions. That is to say 0.03 billion tonnes of CO2 released into the atmosphere each year, compared to 34.8 billion tonnes for all of humanity.

Sebastien Gouspillou, the CEO of BigBlock, the largest company in mining French, added yesterday at the microphone of BFM Crypto: “Today, BTC mining represents the equivalent of a $4 billion subsidy for the renewable energy sector. »

By 2025, 85% of bitcoin mining will be green»he added. “Even earlier because of the recent increase in hydrocarbon prices resulting from the Ukrainian crisis. »

Michael Saylor, for his part, declared during the video presentation of this quarterly report that “BTC miners will always look for the cheapest energy, which happens to be renewable energy.”

Bitcoin (BTC) network energy efficiency up 63% year-on-year

Year on year, the BMC observes that the energy efficiency of the Bitcoin network has increased by 63%from 12.6 PE per gigawatt (GW) in the first quarter of 2021 to 20.5 PE per GW in the first quarter of 2022.

“In the first quarter of 2022, the hashrate (the security associated with the bitcoin network) improved by 23% compared to last year, while energy consumption decreased by 25% said Mr. Saylor.

Microstrategy’s CEO clarified that the 63% annual increase in energy efficiency is linked to “advances in semiconductor technology (retirement of old machines that are no longer profitable), the rapid expansion of BTC mining in North America, the Chinese Exodus, and the worldwide adoption of renewable energy and modern bitcoin mining (cooling) techniques”.

Quarter-on-quarter, electricity consumption increased by 12% while the hashrate increased by 19%, giving us a 6% increase in the energy efficiency of the bitcoin network over the last three months.

Bitcoin energy efficiency increased by 63% YoY

Looking further ahead, bitcoin’s energy efficiency shows a gigantic jump of 5,814% in eight years. Currently, globally,the average energy efficiency of the machines mining is 48.9 J/TH.

It is estimated that this energy efficiency will be further multiplied by 24 (+2,300%) over the next eight years. The reason being that the number of BTC offered at each block will be halved every four years, and the efficiency of semiconductors is expected to increase sixfold.

The important number to take away from this report is that bitcoin (BTC) energy consumption is down 25% year over year!

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Nicolas Teterel avatar

Nicolas Teterel

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

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