Bitcoin Mining Energy Efficiency Is Rapidly Improving, a BMC Report Found
The Bitcoin Mining Council confirms YoY energy consumption increase despite improvements in sustainable power mix and technological efficiency.
Bitcoin mining hashrate is up 73% YoY, while energy usage is up 41% YoY due to an increase in mining efficiency of 23%, a report by the Bitcoin Mining Council (BMC) found.
Data shows that in Q3-22, mining efficiency increased 3%, while sustainable electricity remained substantially equal. On an annual basis, mining efficiency increased 23% and sustainable electricity mix increased 3%.
The report founds that Bitcoin mining uses an “inconsequential” amount of global energy (16bps - 0.16% of global energy production equivalent to 266 TWh) and generates “negligible” carbon emissions (10bps - 0.10% of the world’s carbon emissions equivalent to 0.04 BMt). At the same time, global bitcoin mining industry’s sustainable electricity mix is now 59.4% or has increased approximately 3% year-onyear (from Q3 2021 to Q3 2022), making it one of the most sustainable industries globally.
In Q3 2022, #Bitcoin mining efficiency increased 23% YoY, and sustainable power mix was 59.4%, above 50% for the 6th quarter in a row. The network was 73% more secure YoY, only using 41% more energy, and is now 99% of all crypto hashing power.https://t.co/B0jlkWHYgg— Michael Saylor⚡️ (@saylor) October 18, 2022
Additionally, year-on-year it is estimated that the global Bitcoin Network’s technological efficiency grew by 23% from 17.7 EH per gigawatt (GW) in Q3 2021 to 21.7 EH per GW in Q3 2022. Bitcoin mining is set to be 5,814% more efficient over the last 8 years (estimated global j/th efficiency is 46.0.), meaning that is technology intensive. Satoshi Nakamoto's blockchain network is also the most secure, 100x more powerful than all competing networks combined.
The Bitcoin Mining Council concluded that Bitcoin mining is guaranteed to be dramatically more energy efficient in the next eight years. As Bitcoin reduces energy consumption incentives by 2x every 4 years for the foreseeable future, a 3x and 2x improvement in mining efficiency over the next four and following four years, respectively, can be estimated.