Bitcoin’s energy efficiency has been a concern over the years, as mining activities consumed quite large amounts of electricity.
Part of this was due to the machines that the miners use, which have high energy consumption.
According to a new report According to Coinmetrics, three models of Bitcoin mining rigs account for 76% of the computing power of the Bitcoin network.
The report also revealed that Bitcoin’s energy efficiency has dramatically improved over the past five years.
The energy efficiency of the Bitcoin network has improved dramatically, according to a study
These three mining rig models include the Antminer S19j Pro, the Antminer S19 XP, and the Antminer A19. Two of these mining machines, the Antminer S19j Pro and the Antminer S19, have been the most used by Bitcoin miners since 2021.
Coinmetrics noted that Antminer S19j Pro accounts for 34.3% of the network hashrate, while S19 accounts for 28.1%.
Antminer S19 XP, on the other hand, accounts for just 13.7% of the network hashrate, the report noted.
Meanwhile, the report also noted that the MicroBT M50 hashrate remained below the detectable threshold.
The researchers used a new methodology to determine and access the machines used on the Bitcoin network by tracking their fingerprints.
The electricity consumption and computing power of the machines differ from one model to another.
Some Bitcoin mining equipment consumes a lot of power and produces lower hashrates. Since its inception, Bitcoin has been known for its energy inefficiency due to this problem.
However, the Coinmetrics report noted that the energy efficiency of the Bitcoin network has improved by approximately 60% since July 2018 with the arrival of newer, more efficient machines.
Furthermore, the report stated that the Bitcoin network now consumes an average of 33.6 joules per tetrahash (J/TH) computing power. That’s a 62% increase in grid energy efficiency from 89.3 J/TH on July 1, 2018.
Karim Helmy, one of the report’s authors, emphasized that the rate of change in energy consumption was more aggressive in the past than it is today.
The study also found that the Bitcoin network consumes 13.4 gigawatts (GW) of power, 13% less than the Cambridge University Center for Alternative Finance index, consistently cited by critics.
Bitcoin mining shifts further towards renewable energy
The Bitcoin network derives its security from a proof-of-work consensus powered by advanced hardware and vast amounts of electricity. However, high power consumption could be harmful to the environment.
As a result, Bitcoin miners are turning to more sustainable and green energy sources.
a recent study by CoinShares found that 74.1% of Bitcoin mining power comes from renewable energy.
In a recent development, El Salvador-based start-up Volcano Energy, official a project to build a 241 MW renewable energy power generation park.
The project expects a total commitment of $1 billion, but has already received a $250 million seed round of funding.
Tether, the issuer of the USDT stablecoin, is among the investors in the project and plans to contribute its expertise to help the success of the project.
