Bitcoin (BTC) mining has recently been criticized for environmental protection, and with it comes the regulation of various countries. The New York Congress, a global political hub, passed the 2-year suspension of Bitcoin mining bills on June 3, but as early as late 2021, the New York Times published an article criticizing its high energy consumption, saying that its energy consumption is Google’s electricity consumption 7 times. Regulation followed, and BTC mining had a need for transformation.
Miners Association Report
According to the latest Q2 2022 report from the Bitcoin Mining Council (BMC), nearly 60% of the electricity used by Bitcoin miners already comes from sustainable energy sources.
In its second quarter review of the Bitcoin network, published July 19, BMC found that the global Bitcoin mining industry’s use of sustainable energy increased 6 percent from the second quarter of 2021 and 2 percent from the first quarter of 2022, reached 59.5% in the most recent quarter, and said it was: “one of the most sustainable industries in the world.”
The commission said in its report that the increase in miners’ renewable energy mix also coincided with improvements in mining efficiency, with Bitcoin mining hashrate increasing by 137% year-on-year in the second quarter, while energy usage only increased by 63%. %, showing a 46% increase in efficiency.
In BMC’s YouTube briefing on July 19, MicroStrategy CEO Michael Saylor shared further details on the energy efficiency of Bitcoin mining, the full text of his report, Saylor said that the energy efficiency of miners compared to eight years ago has increased by 5814%.
JPMorgan Chase Mining Cost Research Report
On the 14th of this month, JP. Morgan Chase & Co. also reported that the production cost of Bitcoin has dropped from about $24,000 in early June to about $13,000 now,
JPMorgan’s Bitcoin mining analyst Nikolaos Panigirtzoglou also mentioned in the report that the decline in the cost of producing electricity is mainly due to the decrease in the cost of electricity consumption for Bitcoin. They argue that the change is in line with miners’ goal of protecting profits by deploying more efficient mining machines, rather than eliminating inefficient miners on a massive scale, but also said that lower costs could be seen as a negative for bitcoin’s price factor, meaning miners can tolerate lower sell-off prices.
Nikolaos Panigirtzoglou: While this clearly helps increase miner profitability and reduces pressure on miners to sell their holdings for liquidity or deleveraging, the drop in production costs could be seen as negative for future Bitcoin price prospects as a result, some market participants see the cost of production as the lower end of Bitcoin’s price range in a bear market.
Post time: Sep-08-2022