Digiconomist is committed to promoting (the development of) sustainable blockchain technology. Blockchain protocols such as Bitcoin currently run on the energy-slurping proof-of-work algorithm (creating these proofs of work is better known as “mining”). The Bitcoin Energy Consumption index is a key tool that was created to provide insight into this energy consumption amount, and raise awareness on the unsustainability of the proof-of-work algorithm. The sustainability report uses historical data from the Bitcoin Energy Consumption Index to summarize the sustainability progress and performance of the Bitcoin protocol over the past month.
After February being a terrible month for Bitcoin miners (as their revenues halved last month), March brought them some stability. Revenues from transaction fees continued to crash, but the total revenue from mining actually increased slightly. Mining did become less profitable, as more mining machines flooded the Bitcoin network and caused an increasing amount of electricity costs. The highlights of the past month are as follows:
- Mining revenues increased by a little over 2 percent.
- Mining revenue from transaction fees decreased by 58 percent.
- The average fee per single transaction was $1.69.
- The total network power consumption increased by almost 25 percent.
- The average energy consumption per transaction was up by around 18 percent, and amounts to 829 KWh per unique transaction (enough to power 1 U.S. household for more than 28 days).
The full report is featured below:
|Average Bitcoin Price||$9,036||-4.15%|
|Average Price Volatility||87.61%||-25.10%|
|Mining Revenue from Fees||$9,705,306||-58.25%|
|Mining Revenue from Blocks Mined||$614,199,068||4.52%|
|Total Mining Revenue||$623,904,374||2.13%|
|Total Costs of Mining||$237,516,282||25.26%|
|Percentage of Total Revenue||38.07%||22.65%|
|Total KWh Consumed||4,750,325,631||25.26%|
|Total Transactions Processed||5,730,472||6.60%|
|Average KWh Consumed per TX||829||17.59%|
|Average Fee per Transaction||$1.69||-60.88%|
|Energy cost per TX (at 5 cents per KWh)||$41.45||17.59%|
|Average Network Hashrate (GH/s)||27,474,438,327||12.04%|
|Average Network Effciency (J/GH)||0.23||1.00%|
|Economic Maximum KWh Consumed||12,478,087,473||2.13%|
|Technical Minimum KWh Consumed||2,044,029,962||24.02%|
Year to Date Performance
Apart from the changes in monthly performance, numbers on the current year to date (YTD) performance are found in the following table. These numbers show that Bitcoin has, so far, consumed as much energy as countries like Portugal and Singapore in 2018.
|Average Bitcoin Price||$10,542|
|Average Price Volatility||107.09%|
|Mining Revenue from Fees||$243,696,217|
|Mining Revenue from Blocks Mined||$2,114,968,705|
|Total Mining Revenue||$2,358,664,922|
|Total Costs of Mining||$604,728,999|
|Percentage of Total Revenue||25.64%|
|Total KWh Consumed||12,094,579,990|
|Total Transactions Processed||20,059,379|
|Average KWh Consumed per TX||603|
|Average Fee per Transaction||$12.15|
|Energy cost per TX (at 5 cents per KWh)||$30.15|
|Average Network Hashrate (GH/s)||23,766,972,253|
|Average Network Effciency (J/GH)||0.24|
|Economic Maximum KWh Consumed||47,173,298,439|
|Technical Minimum KWh Consumed||5,133,522,916|
For a daily estimate of Bitcoin’s energy consumption make sure to visit the Bitcoin Energy Consumption Index.