While 37.6% of the energy harnessed by miners of the largest cryptocurrency is derived from sustainable energy types, fossil fuels still account for nearly two-thirds of the total electricity used by industry, with coal being the largest of these sources. .
“Given the recent sharp decline in mining revenue per unit of computing power provided, a shift to more efficient hardware occurs, leading to the at least temporary retirement of older, less efficient hardware,” the report noted, reported by Bloomberg.
The price of BTC fell from US$69,000 in November of last year to less than US$20,000 in recent weeks, a collapse of more than 70% in its price that affected the profit margins of the people and companies that lend their equipment. for the validation process of operations within the network.
Cryptocurrency mining is the process by which transactions are validated within a blockchain -a network through which a cryptocurrency circulates- and, to do so, the “miners” connect their computers with high-speed video cards that solve complex mathematical calculations with which the security of operations within that network is guaranteed.
In the case of Bitcoin, miners use power-hungry computers for transactions and, in return, receive units of Bitcoin as payment.
According to the report, older generations of computers became unprofitable, given the simultaneous increase in electricity costs with the drop in the price of BTC, which caused costs to exceed mining revenues.
The data comes from CCFA’s new indices tool, which provides daily estimates of annual and total greenhouse gas emissions related to Bitcoin and a breakdown of the electricity mix.
Launched in 2019, the index tool has been one of the most widely used data sources for measuring Bitcoin power consumption.
Source: Ambito
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