🔍 What's New?
The Center has recently updated its methodology for estimating Bitcoin's electricity consumption, introducing more precise metrics and assumptions. It looks like the changes aim to enhance the accuracy and reliability of the CBECI.
1️⃣ Past Estimates Revised: The updated methodology was applied retroactively, showing a significant adjustment in the 2021 figure from 104.0 TWh to 89.0 TWh, and a less pronounced but noteworthy difference in 2022 and 2023.
2️⃣ Efficiency Reassessed: The paper now takes into account the release dates and weights each considered mining hardware accordingly. The new estimates are better aligned with real-world efficiencies, hopefully improving the model's accuracy.
3️⃣ Future Outlook: The study acknowledges that Bitcoin's electricity consumption is elusive and depends on various factors, including geography and the type of energy sources used. Future research aims to provide a more nuanced view of Bitcoin's electricity mix.
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Some stuff that will probably cause (errr...) conversation 😁
📉 Significant Downward Revision of 2021 Electricity Consumption: From 104.0 TWh to 89.0 TWh.
🌍 Implications for Public Perception: Could be seen as softening Bitcoin's criticized environmental impact.
🏛️ Policy Impact: Could affect regulations and investment strategies related to Bitcoin's environmental sustainability.
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And some optimistic outlook as well! 😁
🌿 Potential Green Practices: Discusses mitigating methane emissions and other novel concepts like waste-heat recovery, which could make Bitcoin mining more sustainable.
🛠️ Model Improvement: Enhanced methodology to include weighting older, less efficient mining hardware differently, making the estimates more reliable.
🌐 ❓ Expansion Beyond Bitcoin: There are plans to augment the Cambridge Blockchain Network Sustainability Index with Ethereum's pre-Merge and post-Merge greenhouse gas emissions and cover more blockchain networks, indicating a more comprehensive look at the industry's environmental impact as a whole.
Perhaps a final point..?
🔁 Continuous Improvement: I know not everyone will agree, but Cambridge updating their model and data doesn't necessarily suggest that previous estimates were fundamentally flawed but rather, as with all academic work, it's a natural part of the ongoing process of refining and enhancing research. Personally I'd rather applaud the academic rigor and transparency shown.
Thanks to BitcoinFriday (npub1837…qrr4) for posting the article!
https://www.jbs.cam.ac.uk/2023/bitcoin-electricity-consumption/
