The debate about the environmental impact of the Bitcoin mining ecosystem has started anew as scientists offer a new perspective on the topic. A statement written by Noah Smith, a former associate professor of finance who became a columnist targeting the Bitcoin (BTC) mining industry in March, indicates that the ever-increasing power consumption of the network is simply unacceptable. Smith believes that more countries will focus on mining bitcoin because it uses more energy, given that higher bitcoin prices are always accompanied by higher retail prices.
While Nick Carter, founder of Coin Metrics, denied some points raised in Smith’s column, there is still a divided opinion about the amount of energy consumed by Bitcoin mining, the sources of that energy, and the industry’s carbon footprint on a planet. …
The mining industry undoubtedly tends to underestimate its resource-intensive work, and some industry insiders have suggested that discussing Bitcoin’s environmental impact is not a topic, and that the data indicates that most of its retail energy comes from renewable sources. Resources. However, environmentalists have noticed the industry’s comeback, sparking a seemingly endless debate on the issue.
Cointelegraph has spoken with several academics in the field to obtain alternative perspectives, such as the one behind the Cambridge Bitcoin Energy Index, which has become a reliable benchmark for estimated Bitcoin network energy consumption, albeit with some known limitations. …
In addition to a Ph.D. From Aalborg University. Susan Kohler and Associate Professor Massimo Bisol are co-authors of a study titled “Assessing the Bitcoin Mining Life Cycle”, which makes some data-based assumptions about the industry’s environmental impact.
CBECI was created to definitively answer this question
In an interview with Cointelegraph, Anton Dick, head of the Cambridge Center for Alternative Financing for Crypto Assets and Blockchain, told the story of CBEC and the method used to obtain energy estimates for Bitcoin’s electricity consumption index.
A Cambridge research assistant said the team noticed that other models that wanted to make accurate estimates of the energy use of the Bitcoin network took a top-down approach, using as an example the data that the number of miners spend on electricity.
The CBECI method is a “bottom-up approach” that uses available mining data to generate an estimate of minimum and maximum power consumption for the Bitcoin network. This information is “based on assumptions from objective numbers such as hash rates,” Dick explained. He added, “All of these different machines have a known efficiency, joules of energy that they use to melt cannabis. Based on these assumptions, we built an index.”
The index gives an estimated range of energy consumption with a current theoretical minimum annual energy consumption of 43.32 TWh to a theoretical upper limit of 476.18 TWh. The current estimate of Bitcoin consumption is based on the assumption that miners use a range of profitable devices.