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Decreasing Bitcoin (BTC) hashrate has reduced energy consumption


After Bitcoin will carry out the halving on May 11, network hashrate decreased.

The absolute maximum peak occurred on the same day as the halving, but has since decreased.

In particular, it fell significantly until mid-May, after which it increased slightly, especially after the dips in difficulty on May 20, and then on June 4.

This dynamic did not bring any major problems from a mining point of view, as block time peaked on May 17 in more than 14 minutes, but then returned to the standard 10-minute figure in late May. .

In other words, it was permanently above 11 minutes only from May 13 to 26, for less than two weeks, and in these two weeks it exceeded 13 minutes only one day.

However, there were some additional problems in terms of transaction costs, in part due to congestion in the halving neighborhood.

On May 20, the average rate reached nearly $ 4, and it consistently stayed above $ 1 from April 30 to June 4. However, the hottest period lasted just nine days, from June 13 to 22, when the average rate was permanently above $ 2.

However, halving also brought with it a positive consequence: a reduction in energy consumption.

In fact, according to the most recent estimates, the total annual consumption projection has gone from 77 TWh per year on May 10 to approximately 60 TWh per year, with a sudden reduction of 22% as a result of halving.

In the same period, bitcoin's mining profitability went from $ 0.161 per day for THash / s on May 9, to the current 0.0734, a 54% reduction.

Therefore, the reason why halving the miners' reward has reduced energy consumption by just 22% is probably due to the fact that the miners have simply accepted a lower profit, i.e. they have reduced their costs and, therefore, their consumption.

At the moment, the profitability of Bitcoin mining is at its lowest point of all time, and this may lead to a further drop in consumption.

However, miners have shown themselves to be well prepared, presumably for some time, to compensate for the halving of the reward, to the point that not only were there no actual shocks, but the adjustment period was also relatively short, even positive consequences.

After all, it had long been known that in May 2020 the reward would be cut in half, and lately, much more efficient and less energy intensive mining machines have been launched on the market.

This trend is likely to last long term, although it is very likely that from now until the next halving scheduled for early 2024, the energy consumption of Bitcoin mining will increase further, especially if the value of BTC increases.

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