Previous data on the energy consumption of mining industry inflated

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Previously provided estimates of the total quantity of electricity consumed by the mining industry to mine Bitcoins, was overstated by 50%.

The claim that the energy used in the process of annual production of Bitcoins is comparable to the consumption of electricity by all the inhabitants of Ireland seems to have been caused by the study, published by Alex de Vries, which provided data on energy consumption of Bitcoin miners from Digiconomist (BECI).

Some critics point out that in these studies the figure, the power consumed in mining Bitcoins, was overstated by more than 115%.

New research and new results

Denying estimates based on the index BECI, Coinshares published a report of its own study, which stated that the mining industry consumes about 35 terawatt-hours (tw/h) of power – 50% less than the estimate based on BECI.

Sam de Vries in their study acknowledged that “we saw a lot of calculations pointing to completely different indicators, but we need more scientific data to discuss where the network. Now available information is rather low quality, so I hope people will use this article as a basis for further research”.

In a report published Coinshares, it was found that the total energy consumption for bitcoin mining accounts for 35 per/h, which is approximately twice smaller than indicated in studies of de Vries are based on data BECI Digiconomist.

Study leader Coinshares Research and co-author of the report, Christopher Bendiksen says:

“Many of the miners with whom we spoke do not agree with data used Digiconomist, which are based on the performance of a small group of mining pools, not representing the majority community. Our findings contradict these figures, and we believe that they were based on incorrect data obtained at inferior study”.

BTC Mining mainly uses renewable energy sources

In the new study notes that the Bitcoin mining mainly uses renewable energy sources such as hydropower.

“In General, we believe that, despite earlier predictions, Bitcoin mining mainly depends on cheap renewable energy, dominated by hydropower, with the exception of limited use of some Chinese farms thermal energy from a coal industry that is a small part of consumption in the network. In addition, China has a huge excess capacity for the production of electricity at hydroelectric power plants in southern and South-Western provinces,” reads the report.

Therefore, the previously provided information is based on information BECI, are untrue.

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