My new report: Estimating Bitcoin Electricity Use: A Beginner’s Guide
My new report on Bitcoin electricity use is out this morning:
Koomey, Jonathan. 2019. Estimating Bitcoin Electricity Use: A Beginner’s Guide. Washington, DC: Coin Center. May 7. [https://coincenter.org/entry/bitcoin-electricity]
Here’s the abstract for the report:
Abstract
The rapid emergence of Bitcoin and other cryptocurrencies has taken many in the energy sector by surprise. This report summarizes complexities and pitfalls in analyzing the electricity demand of new information technology, focusing on Bitcoin, the mostly widely used cryptocurrency. It also gives best practices for analyses in this space, and reviews recent estimates in light of those best practices. Things change rapidly for cryptocurrency, so special care (such as including an exact date for each estimate) is needed in describing the results of such analyses.
The most reliable estimates of Bitcoin electricity use for June 30, 2018 total about 0.2% of global electricity consumption. Because of the collapse in Bitcoin prices in the latter half of 2018, some estimates indicate that this total has begun to decline, though nobody knows if that trend will continue.
Future studies of cryptocurrency electricity use can avoid the pitfalls identified in this report by following some simple rules, which the report describes in more detail:
• Report estimates to the day
• Provide complete and accurate documentation
• Avoid guesses and rough estimates about underlying data
• Collect bottom-up measured data in the field for both components and systems
• Properly address locational variations in siting of mining facilities
• Explicitly and completely assess uncertainties
• Avoid extrapolating into the future
Studies that don’t follow these best practices should be viewed with skepticism.
The key graph (Figure 2) is here:
There are three current credible estimates for Bitcoin electricity use (Vranken, Bevand, and Krause and Tolaymat). Their estimates are consistent with each other and are based on transparent and sensible data and assumptions. The other three estimates I reviewed (Digiconomist, Mora et al, and O’Dwyer and Malone) all have serious issues.
The full reference is:
Koomey, Jonathan. 2019. Estimating Bitcoin Electricity Use: A Beginner’s Guide. Washington, DC: Coin Center. May 7. [https://coincenter.org/entry/bitcoin-electricity]
Email me if you have questions.
