$4,034.33 -0.13%
BTC · 14w

Beware of Lazy Research: Let’s Talk Electricity Waste & How Bitcoin Mining Can Power A Renewable…

The reality of Bitcoin’s energy mix

Bitcoin mining is mainly driven by renewable energy — hydro (by far the largest component), solar, wind and geothermal. Period.

In fact, we’ve estimated the lower bound of renewables penetration in the bitcoin mining energy mix to be 77.6%.

We actually think it’s significantly higher than that, but in the name of defensible conservatism, we won’t say what that number is.

Everyone seriously involved in bitcoin mining already knows this — and has known for years — but it’s been surprisingly hard to quantify so we’ve kept our heads down in case we were all somehow wrong. The mining industry is notoriously secretive which makes it exceptionally tough to find or extract quality data.

So how’d we do it?

First, we decided to turn the commonly employed top-down methodology on its head and go bottom-up instead.

This means that instead of picking a single or couple mining units and using their specs as a proxy for the entire network — essentially pretending the entire network is simply a multiple of the same unit(s) — we went the other way around and figured out approximately how many units of each mining hardware exist in the current network.

Over the last year we painstakingly assembled a model of all mining gear produced in quantities exceeding 1000 units. We collected performance specs, volume weighted average purchase prices, batch sizes and total deployment numbers.

From that dataset we calculated that the bitcoin mining network currently draws approximately 4.7 GW, or 41tWh on an annualised basis.

At the time of writing, this figure is falling — and has been since late September. The estimate also includes a 20% excess for cooling, a figure we consider highly conservative.

For reference, there are approximately 85m PlayStation 4, 40m Xbox One and 15m Nintendo Wii U consoles distributed among global households (see our report for full list of sources). Their weighted average...

Continue on
Recent news
BTC -0.13% · · 3h

Binance To Offer BITCOIN Trading On Margin

BTC -0.13% · · 12h

"The House of Rekt"

Welcome to the House of The Rekt - Where you may sell but you may NEVER leave!!! This is the first video of many, I hope you like it and please subscribe for...
BTC -0.13% · · 15h

Superorder Basics: Trading Terminals Overview

Remember the article about the benefits of using our crypto trading terminal? There, we’ve discussed the definitive advantages of Superorder and general nice features of this tool for traders. Today w...
BTC -0.13% · · 18h

When you remove fake volume, the real BTC volume is quite healthy given its mkt cap. Gold’s market cap is ~$7T with a spot volume of ~$37B implying a 0.53% daily turnover. Bitcoin’s $70B market cap would imply a 0.39% daily turnover, very much in-line with that of gold.

10/ When you remove fake volume, the real BTC volume is quite healthy given its mkt cap.Gold’s market cap is ~$7T with a spot volume of ~$37B implying a 0.53% daily turnover. Bitcoin’s $70B market cap...
BTC -0.13% · · 19h

95% of reported volume is fake but LOTS of good news!

Thread by @BitwiseInvest: "1/ New Research from us @BitwiseInvest. As part of 226 slides presented to the SEC on our ETF filing, we did a firalysis of *order book data* from all 81 exchanges reporting...
BTC -0.13% · · 22h

Heating a greenhouse with a bitcoin miner

#greenhouse #heating using @SilentMinerHeat Please support us via #bitcoin @tallyco_in campaign available here:— Heat Miner (@SilentMinerHeat) March ...