Assessing the Energy Intensity of Bitcoin Mining: A Comprehensive Analysis

Energy Consumption Analysis of Bitcoin Mining

Abstract: In the wake of Bitcoin's introduction in 2008, the rapid rise in its price and a burgeoning number of alternative cryptocurrencies have sparked global interest and concern over their energy consumption. As Bitcoin and its derivatives continue to grow both financially and in popularity, there is a pressing need to evaluate the environmental impact, particularly focusing on computational power requirements during proof-of-work processes. This study uniquely examines the energy intensity associated exclusively with mining Bitcoin's blockchn without encompassing other potential energy expitures.

Methods:

We utilized 160 GB of historical Bitcoin blockchn data spanning from January 3, 2009, to June 5, 2018. Our involved the analysis and estimation of energy consumption and power demands for various hardwareincluding Central Processing Units CPUs, Graphics Processing Units GPUs, Field-Programmable Gate Arrays FPGAs, and Application-Specific Integrated Circuits ASICs. Two metrics were defined: minimum and maximum energy consumption. These estimations encompassed a comprehensive timeframe of mining activities.

Key Findings:

1. Historical Peak: The highest power demand for Bitcoin mining occurred bi-weekly around December 18, 2017, at an estimated range between 1.3 GW to 14.8 GW - a figure comparable to the installed capacities of Finland ~16 GW and Denmark ~14 GW.

2. Energy Consumption Dynamics: By June 2018, annual Bitcoin mining energy consumption from difficulty recalculation was estimated at approximately 15.47 TWh to 50.24 TWh.

Implications:

The study underscores the significant environmental footprint associated with Bitcoin's proof-of-work mechanism. It highlights the interplay between technological advancement in mining hardware and its consequent energy demands, suggesting that as computational capabilities improve, so does the potential for higher energy consumption. This insight is pivotal for stakeholders considering sustnable practices within blockchn technology.

:

As digital currencies continue to evolve, the need for a comprehensive analysis of their environmental impacts becomes increasingly crucial. This paper contributes by quantifying Bitcoin mining's energy consumption, offering insights into current trs and potential future developments in the sector. These findings can inform policy decisions med at balancing technological innovation with sustnable practices.

Keywords:

Bitcoin, mining, blockchn, energy, consumption

Acknowledgments:

We ext our gratitude to list of acknowledgments for their invaluable contributions and support throughout this research project.

References:

• Bitcoin Network Data Repository 2018. Historical records of the Bitcoin blockchn.

• International Energy Agency. 2019. Global Status Report on Power Generation Capacity in 2019.

• Other references as appropriate

: The data used for this study was compiled from publicly avlable sources and was last updated by insert date to ensure accuracy as of that date.

Author Contributions:

-S. Kufeoglu contributed the conceptual framework, conducted primary data analysis, wrote sections of the manuscript, and coordinated with co-authors on revisions.

-M. ?zkuran provided expertise in energy consumption, reviewed draft versions of the paper, and offered critical feedback throughout the project.

• that for a final submission, this abstract should be adjusted according to journal guidelines and any additional information required by specific academic or publishing standards.*
  This article is reproduced from: https://www.repository.cam.ac.uk/items/fd416409-1aef-49da-b373-3db366738fc5

Please indicate when reprinting from: https://www.640i.com/Bitcoin_mining/Bitcoin_Mining_Energy_Consumption_Analysis.html