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Cambridge Bitcoin Electricity Consumption Index

Includes Bitcoin network power demand and Bitcoin mining hardware efficiency, as well as many other charts.

The Cambridge Bitcoin Electricity Consumption Index (CBECI) provides up-to-date estimates of Bitcoin’s daily power demand and an annualised electricity consumption estimate. The applied methodology is based on a hybrid top-down approach initially developed by Marc Bevand , building a basket of real-world hardware with the underlying assumption that mining nodes (‘miners’) are rational economic agents that only use profitable hardware.

The Cambridge Bitcoin Electricity Consumption Index (CBECI) provides an up-to-date estimate of the Bitcoin network’s daily electricity load. The underlying techno-economic model is based on a bottom-up approach initially developed byin 2017 that uses the profitability threshold of different types of mining equipment as the starting point.

Given that the actual power demand cannot be determined due to the decentralised nature of the network, we made several assumptions, including hypothetical lower-bound (floor) and upper-bound (ceiling) estimates. These two boundaries encompass a best-guess estimate, a more accurate indication of the actual power demand.

The lower-bound estimate is the theoretical minimum total power demand based on the best-case assumption that all miners always use the most energy-efficient equipment. The upper-bound estimate is the theoretical maximum total power demand based on the worst-case assumption that all miners always use the least energy-efficient hardware as long as running the equipment remains profitable in terms of electricity costs. The best-guess estimate is based on the more realistic assumption that miners use a combination of profitable hardware.

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Bitcoin Resources

The Bitcoin Standard

by Saifedean Ammous

Bitcoin Whitepaper

by Satoshi Nakamoto

Not Your Keys, Not Your Coins

by Andreas M. Antonopoulos

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