All finance enthusiasts continue to pursue the best digital assets and opportunities on the market. Many turn to Bitcoin mining due to the incredible success and growth of the world’s leading cryptocurrency. However, many others resist it due to the perception that the process consumes too much energy.
Fact: Bitcoin mining uses less energy than gold mining, the finance sector, and even video games. What’s more, the industry is becoming more efficient by the year!
The misconception of Bitcoin mining
The confusion surrounding Bitcoin mining is understandable. Bitcoin miners run their systems to solve the complex mathematical problems that subsequently record transactions and introduce new BTC to the public ledger. Bitcoin mining seems resource-heavy, but it’s actually very efficient.
Bitcoin Mining Council’s Q3 2021 Data Review raises some important findings to dispel some of the myths surrounding the environmental impacts of the Bitcoin mining processes. Firstly, global Bitcoin mining consumes just 188TWH compared to the world’s total output of 154,620TWH. Otherwise, Bitcoin miners use just 0.38% of the world’s energy while the industry’s value has soared to $15-20 billion industry. For perspective, the following energy consumption levels have also been revealed;
- Road vehicles – 15,424TWh,
- Air conditioning in the US – 6,283TWh,
- Appliances in the US – 3,000TWh,
- Video games – 214TWh,
- Festive lights – 201TWh.
In short, Bitcoin miners can work without guilt; the industry continues to take positive steps.
The increased efficiency of modern Bitcoin mining
Bitcoin mining efficiency grew by 22% in Q3, which follows a 4200% increase in joule-per-terahash efficiency in just eight years since the days of CPU mining. The industry shows great potential to keep improving too. Bitcoin mining is predicted to see a 3x improvement over the next four years, followed by a 2x upgrade in the four years after this.
Interestingly, the Bitcoin mining industry additionally has a higher sustainable energy mix compared to other countries. The sector’s current rate of sustainable power stands at 57.7%, which stands out admirably against the following nations;
- Germany – 48.5%,
- USA – 31.4%,
- Canada – 22.5%,
- World – 21.7%,
- Brazil – 2.3%.
Bitcoin mining and mining for digital assets have become more sustainable for many reasons. Computer tech has increased in efficiency rates. Meanwhile, Mawson continues to improve the mining infrastructures through large-scale, purpose-built facilities that guarantee optimal efficiency for the current period and have the capabilities to adapt to evolving landscapes. Through our Modular Data Centre (MDC) design which is both scalable and flexible to allow for rapid deployment of new customer facilities, we remove the upfront sunk capital being stranded in unutilised datacentre real estate. This innovative model allows for significant commercial benefit to the operational cost of the company whilst providing limitless scalability to future customers deployments.
The industry continues to improve its efficiency of time, resources, and money. All of these elements feed into a more sustainable situation. Bitcoin miners can mine for digital assets secure in the knowledge that they have selected an industry that outperforms the vast majority of others and continues to raise the bar.
Grid operators like ERCOT have suggested that power companies may become the biggest BTC miners over the coming years. Miners are also financing mining activities in more versatile ways than ever. The industry’s future is more efficient than ever.
