Bitcoin network power usage falls 20% by 2022 as renewables take control
Bitcoin (BTC) has moved to renewable energy sources in reaction to China’s ban on cryptocurrency mining, which may be one of the primary drivers driving the network’s over 20 percent decline in power usage.
According to estimates estimated by the Cambridge Bitcoin Electricity Consumption Index as of August 9, 2022, the Bitcoin network’s global hash rate has decreased from an all-time high of 15.80 GW of electricity per day in May 2021 to 10.49 GW today.
Since the beginning of the year, power consumption has decreased by 21 percent, falling from 13,28 GW on January 2, 2022, to 10.49 GW on August 8, 2022.
In parallel with the sudden decline in the price of Bitcoin and the profitability of its mining, the power demand also decreased. However, the increase in the usage of green energy also contributed significantly to the decline in order.
In March of this year, for the first time, the US government unveiled plans for a policy surrounding Bitcoin mining facilities to address the sector’s power regulatory issue and its influence on the environment.
In brief, the White House’s engagement in Bitcoin mining attempts to clean up the sector in light of worries that the activity produces excessive carbon emissions.
In January, a survey by the Bitcoin Mining Council (BMS) revealed that over 60 percent of the energy utilised to operate Bitcoin mining equipment was derived from renewable sources.
Notably, this has uncovered a pattern maintained to the present day, as supported by BMS’s Q2 2022 report, demonstrating that green electricity and technology efficiency can work together to make sustainability viable.
After the crypto market meltdown in May, which caused Bitcoin’s price to drop to an 18-month low, Bitcoin briefly ceased to be lucrative for miners in June, which might have affected the network’s energy consumption.