What? Bitcoin mining is an energy killer?
According to a report, the global electricity consumption of Bitcoin miners fell by 25 percent in the first quarter of 2022. This is also due to the more efficient mining rigs.
Every quarter, the Bitcoin Mining Council (BMC) releases data to survey its members. Amazingly, the BMC notes that BTC energy consumption has fallen by 25 percent compared to last year. The main reason for the reduced consumption is a 63 percent increase in efficiency. The Bitcoin miners refer to efficiency as the hash rate: This stands for the computing power of the mining hardware. This is also called a mining rig.
The Bitcoin Mining Council was founded in July 2021 at the suggestion of none other than Elon Musk. Among the founding members is Michael Saylor . Since then, the BMC has published quarterly reports on mining evaluations and surveys.
“In the first quarter of 2022, bitcoin mining efficiency increased by 63%, while the sustainable energy mix is at 58%. Sustainable energy consumption thus exceeds 50% for the fourth consecutive time. The network is 23% safer over the year, consuming 25% less energy. It's hard to find an industry that operates more sustainably and efficiently.
Michael Saylor , with his investment firm MicroStrategy, is the best-known member of the BMC. He is known as the Bitcoin advocate. No wonder, then, that MicroStrategy holds the largest holdings at around 125,000 BTC.
Mining becomes more efficient - Michael Saylor remains bullish
Measured in terms of meaningfulness, the BMC report is probably the most important in the crypto space . Around 50 percent of all mining companies are represented as members. It is all the more exciting that 64.6 percent of the members state that they use sustainable energy. Through this survey, the BMC can add up the figures for the global Bitcoin network: Here, too, companies use around 58.4 percent of sustainable energy. Compared to last year, that's an astronomical increase of 59 percent. At the same time, efficiency increased from 12.6 exahash per gigawatt to 20.5. Without showing any great physical talent, you can immediately see that this is significantly more hashrate per gigawatt.
Darin Feinstein, one of the founders of the BMC, also remains optimistic and holds us journalists accountable:
“The world should get facts about the energy consumption and CO₂ emissions of the BTC network. We hope those of journalistic integrity live up to their promise to publish true news on these stunning facts."
In any case, we can already look forward to the next report for the second quarter. There should actually prove what we all already suspect: The energy consumption should continue to fall. I've definitely maintained my journalistic integrity. Now it's your turn with word of mouth!