Bitcoin Mining Sees Significant Drop in Energy Consumption

Bitcoin (BTC) mining has seen a notable decrease in energy consumption, dropping to 115.21 TWh (terawatt-hours) as of now, down 24% from 152.52 TWh at the end of July 2024, according to Digiconomist.

This reduction could help address concerns about Bitcoin’s environmental impact, which has been criticized for its high energy demands and carbon footprint.

One reason for the decline could be Bitcoin miners adopting more sustainable practices. For instance, some are turning to hydro-powered mining, with new projects like Ethiopia’s Grand Ethiopian Renaissance Dam attracting miners due to its substantial power supply and lower energy costs. The Ethiopian government has welcomed this development, noting the benefit of foreign currency earnings from these mining operations.

Despite ongoing debates over Bitcoin’s environmental impact, some recent reports, including one from KPMG, argue that Bitcoin’s mining is less harmful than previously thought. KPMG’s findings suggest that Bitcoin mining contributes less to greenhouse gas emissions compared to the electricity production it consumes and uses only a small fraction of global energy demand.

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Bitcoin supporters are advocating for more sustainable practices, such as forming the Bitcoin Council to promote eco-friendly mining methods and improving energy efficiency with advanced mining rigs. While there are suggestions for Bitcoin to adopt a less energy-intensive consensus mechanism like Ethereum’s Proof of Stake, this remains a contentious issue among Bitcoin enthusiasts.

Alexander Stefanov