The University of Cambridge releases a model for estimating Bitcoin’s real time and annual energy use

The University of Cambridge’s Judge Business School developed a model called the Cambridge Bitcoin Electricity Consumption Index (CBECI) to estimate Bitcoin’s real-time and annual energy use.

The CBECI provides three categories of estimates: upper bound, estimated, and lower bound consumption. The estimated figure for real-time energy use is currently around 7.5 GW, while the annualized consumption stands at approximately 53 TWh. These figures represent a liberal, average, and conservative spread for Bitcoin’s actual power usage.

 

The model combines data on network hashrate, mining hardware efficiency, and data center power usage efficiency (PUE). It considers different scenarios, assuming various hardware efficiencies and PUE values. The global average electricity price used in the model is $0.05 per kWh.

Energy Consumption vs. Carbon Emissions: Energy consumption does not directly translate to carbon emissions. The environmental impact depends on the energy mix (e.g., hydro vs. coal-powered energy). Bitcoin’s Value to Society: Whether Bitcoin’s energy use is justified depends on its perceived value. Some view it as a tool to escape monetary repression, while others see it as wasteful.

Bitcoin’s annual energy consumption is roughly equivalent to that of small countries like Malaysia or Sweden. However, the debate should consider both environmental impact and societal benefits.
 

In summary, Bitcoin’s energy use is a complex topic, and understanding its context is essential for informed discussions. While it consumes significant energy, its value proposition varies depending on individual perspectives.