The declining trend of the world of cryptocurrencies has had a great impact on the market. The sharp drop in the price of cryptocurrencies in the past few weeks has led to a 50% reduction in bitcoin mining power consumption.
Bitcoin mining power consumption fell sharply following a sharp fall in cryptocurrencies in June. According to the data, bitcoin energy consumption has decreased by more than a third in general and about 50% compared to the last two weeks.
Read more: How much energy is needed to extract bitcoin?
Severe reduction in bitcoin mining power consumption
The high power consumption of bitcoin miners has worried environmentalists and advocates. According to experts, bitcoin mining devices will cause air pollution with high consumption of electricity and energy. Bitcoin miners receive rewards through transaction validation. The validation process leads to high power consumption.
According to Alex Ferris, digital currency economist at digiconomist.net, Bitcoin’s annual energy consumption fell from about 204 TWh on June 11 to about 132 TW on June 23. Is. Bitcoin mining power consumption is currently equal to the annual electricity consumption of Argentina.
The power consumption of bitcoin mining is directly related to the price of these cryptocurrencies. As the price of bitcoin increases, so will the motivation of miners for BTC mines. The price of Bitcoin in November 2021 reached its highest historical price of 69 thousand dollars. de Vries estimates that the annual power consumption of Bitcoin is between 180 and 200 TWh. The power consumption of bitcoin mining is equal to the annual power consumption of all data centers in the world.
The relationship between bitcoin mining power consumption and its price
The value of bitcoin has been steadily declining over the past few months. This price reduction has not had an immediate effect on the energy consumption of these cryptocurrencies. The reason for this is the existence of an important price range of 25 thousand dollars of bitcoin. If the price can rise above $ 25,200, the Bitcoin network will maintain its power consumption of 180 TWh. Bitcoin miners will continue to operate as long as they can profit from the mining operation.
If Bitcoin sees a sharper price drop, the miners’ profit margins will decrease, which is why these people will start selling their older, less efficient devices. The price of Bitcoin has been below the $ 24,000 level since June 13 (June 23). de Vries explained:
We are reaching challenging price levels for miners. Under these conditions, not only will the conditions for further growth be limited, but they will also have a negative impact on their daily performance.
Atrium Mining Power Consumption
Atrium follows the same energy process as Bitcoin. With the price of Atrium declining in recent months, the estimated electricity consumption of the cryptocurrency mining reached half of the electricity consumption in late May.
At present, many efforts have been made to reduce the energy consumption of cryptocurrencies. Some cryptocurrencies consume less power than Bitcoin due to not using the Puzzle Solving process. Research will continue to find a way to reduce the use of cryptocurrency mining.
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Source: theverge