The Cambridge Bitcoin Electricity Consumption Index (CBECI) has revised its methodology to improve the accuracy and reliability of its estimates. This is the first revision since its inception in 2019. The CBECI was created to provide data-driven insights into Bitcoin mining’s energy consumption and environmental impact. The revision focuses on recent developments in Bitcoin mining hardware and hash rate. Researchers noted that the scarcity of hardware-related data posed a significant challenge, limiting the CBECI’s ability to accurately assess hardware types and ubiquity. This led to the creation of a methodology that simulates daily hardware distribution based on performance and power usage data of real hardware.
Previously, the CBECI assumed that every profitable hardware model released less than five years ago equally contributed to the total network hash rate. This led to a disproportionately large number of older mining hardware compared to newer models in the assumed hardware distribution during exceptionally profitable mining periods. The researchers discovered that more recently released equipment was underrepresented, while equipment nearing the end of its life cycle was overrepresented. This prompted the change in the CBECI methodology.
The team compared hash rate increases with US import data reflecting recent Bitcoin mining hardware deliveries and publicly available sales data from mining hardware manufacturer Canaan. This analysis was used to test the hypothesis that increases in network hash rate can be attributed to more recently released mining hardware.
There is a divide in opinion on the environmental impact of Bitcoin mining. Critics argue that Bitcoin jeopardizes environmental advancements and could exacerbate climate change, while supporters argue that the mining industry could combat climate change and provide other societal benefits.
The CBECI includes various data points and visualizations, including Bitcoin network power demand, a mining map reflecting the geographic distribution of Bitcoin’s mining hash rate, and a greenhouse gas emissions index. The CBECI and greenhouse gas emissions indexes provide three different estimates for both sectors, providing a hypothetical range for these specific metrics.
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