A report on Bitcoin mining has revealed that it consumes less power than gaming

A report on Bitcoin mining has revealed that it consumes less power than gaming

The data shows that the Bitcoin mining industry consumes slightly less energy overall compared to the video game sector.

Bitcoin mining power consumption is now 100 TWh per year

According to a recent report by obscure researchWhile BTC mining power consumption has grown exponentially in recent years, the industry still makes up a very small portion of the global total.

Currently, bitcoin miners use electricity at a rate of about 100 TWh per year. This figure represents about 0.06% of the total global energy demand, which is a very small number.

Here is a graph showing how bitcoin mining compares with some of the other energy-intensive industries on Earth:

Bitcoin mining for gaming energy

The industry's energy demands are lower than all these sectors | Source: Arcane Research's "How Bitcoin Mining Can Transform the Energy Industry"

As you can see in the graph above, the video game industry consumes about 105 TWh per year, just a little more than Bitcoin miners use.

On the other hand, gold mining consumes more electricity to run it as the annual energy consumption is around 240 TWh at present, and it takes approximately 2.5 times more BTC to mine.

The chart also includes data on paper production, which requires 2,361 TWh per year, 10 times that of gold mining, and 24 times that of bitcoin miners.

The report also argues that the way BTC miners consume energy is different from these other energy-intensive industries.

Bitcoin miners are unique consumers of electricity

There are five main things that make miners “unique consumers of energy”. First, about 80% of the operating costs of bitcoin mining consist of electricity alone.

This means that miners have a lot of incentive to do as little energy as possible, or to move to areas where prices are lower.

The second difference is that mining does not know the location. Miners can set up their facilities almost anywhere, and thus can take advantage of energy resources that are not used by anyone else due to the site limitations of other industries.

Third, Bitcoin miners can turn their machines on or off at any moment. Not only that, but they can even adjust their wattage by watt consumption. The report notes that this feature makes mining well suited to serve as a demand response tool, which can help improve the power of power grids.

The fourth exceptional point about Bitcoin mining is modularity. Individual AISC machines can be grouped together in any quantities, enabling miners to scale their facilities according to the amount of power available. This indicates that miners can benefit from 100% of the excess energy coming out of power projects.

Finally, there is the possibility of moving mining rigs. Bitcoin miners can easily move their devices to other locations due to the extent of portable AISC setup.

At the time of writing, Bitcoin price is hovering around $19.8K, down 2% in the past week.

Bitcoin price chart

BTC has gone down over the past day | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Arcane Research

Source link

Leave a Comment