The Cambridge Bitcoin Electricity Consumption Index (CBECI), a well-known tool for measuring the energy consumption of Bitcoin mining, has recently undergone a methodology revision to improve its accuracy and reliability. The CBECI was launched in July 2019 with the aim of providing data-driven insights into the energy-intensive nature of Bitcoin mining and its environmental impact.
In an exclusive interview with Cointelegraph, head researcher Alexander Neumueller explained the purpose of the CBECI and how it provides estimates of the Bitcoin network’s electricity consumption in a way that is easily understandable for the general public. The revised methodology of the CBECI focuses on recent developments in Bitcoin mining hardware and hash rate, ensuring that the Index accurately reflects the changing landscape of the industry.
One of the challenges faced by the researchers was the limited availability of data on mining hardware. To address this, they created a methodology that simulated a daily hardware distribution based on real performance and power usage data. The previous methodology assumed that every profitable hardware model released within the past five years contributed equally to the total network hash rate. However, this led to an overrepresentation of older mining hardware during exceptionally profitable mining periods.
Through their analysis, the researchers found that more recently released equipment seemed to be underrepresented, while older equipment nearing the end of its life cycle was overrepresented. This discovery prompted the change in the CBECI methodology. The team compared hash rate increases with import data on Bitcoin mining equipment in the United States and publicly available sales data from mining hardware manufacturer Canaan to validate their hypothesis.
In discussing the significance of the CBECI, Neumueller highlighted the divide in opinions regarding Bitcoin’s environmental impact. Critics argue that Bitcoin jeopardizes environmental advancements and exacerbates climate change, while supporters believe that the mining industry could actually combat climate change and provide other societal benefits. The CBECI aims to provide unbiased data and insights to contribute to a more informed discussion on the subject.
The CBECI offers a wide range of rich data points and visualizations, including the Index’s Bitcoin network power demand, a mining map showing the geographic distribution of Bitcoin’s mining hash rate, and a greenhouse gas emissions index. These indexes provide three different estimates for both sectors, offering a hypothetical range for these specific metrics.
The revised methodology of the CBECI enhances its ability to accurately estimate Bitcoin’s electricity consumption and provides valuable insights into the evolving landscape of the mining industry. By addressing the limitations of the previous methodology and incorporating new data sources, the CBECI continues to be a reliable tool for understanding the energy consumption and environmental impact of Bitcoin mining.
Source link
