The debate about the environmental impact of the Bitcoin mining ecosystem has started anew as scientists offer a new perspective on the topic. In a statement written by Noah Smith, a former assistant professor of economics who became a columnist, targeted the Bitcoin (BTC) mining industry in March, indicating that the network’s ever-increasing power consumption was simply unacceptable. Smith is convinced that more countries will focus on mining bitcoin because it uses more energy, since a rise in the price of BTC is always accompanied by a rise in the retail price.
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 the planet. …
The mining industry undoubtedly tends to underestimate its resource-intensive work, and some industry insiders have suggested that the debate about Bitcoin’s environmental impact is not an issue, and that the data indicates that most retail energy uses renewable energy. Resources. However, environmentalists have noticed the industry’s comeback, sparking a seemingly endless debate on the issue.
Cointelegraph has spoken with several scholars in the field to obtain alternative perspectives on the issue, such as the one behind the Cambridge Bitcoin Energy Consumption Index, which has become a reliable benchmark for estimated Bitcoin network power consumption, albeit with some good numbers. Known restrictions.
In addition to a Ph.D. From Aalborg University. Susan Koller 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 Deak, President of the Cambridge Center for Alternative Finance, Dedicated to Crypto Assets and Blockchain, told the story of CBEC and the method used to estimate energy consumption 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, “These different machines have a known efficiency, the joules of energy they use to solve the hash problem. 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.