University Of Cambridge Expert: New Miners Increase Hash Rate With Lower Use In Consumption
- Bitcoin mining can be enhanced with better information
- Miners consume large amounts of electricity to confirm transactions
Michel Rauchs, an expert from the University of Cambridge Judge Business School, defended Bitcoin (BTC) mining saying that hash rate continues increasing with a lower consumption per TH/s. He said that during a conversation with Peter McCormack’s What Bitcoin Did Podcast.
Crypto Mining Consumption
During this conversation, the expert discussed Bitcoin’s power consumption and carbon footprint, which is something that is worrying many individuals around the world. There are many studies and reports that compare Bitcoin with the energy consumed by other countries.
This is something that has a negative impact on Bitcoin because it shows the negative impact that it as over the environment. The expert mentioned that as governments increase taxes on energy that affect miners, it is clear that they would prefer to operate in other places with lower cost.
For the expert, it is important to have clear information about the industry and how it is really affecting the environment. Without this clear data, policymakers would not have the necessary tools to create adequate measures to mitigate that effect or to understand whether the effect over the market is as hard as they previously thought.
On the matter, he commented:
“That might prevent them (regulators) from taking too restrictive measures that they might have taken otherwise based on, you know, sparse or incorrect information.”
There are many reports that compare Bitcoin’s energy consumption with the energy consumed by many countries. However, these estimations can be improved if better research is conducted on the industry. Additionally, he mentioned that as hash rate increases, there is also an improvement in efficiency with a lower increase in energy consumption per TH/s.
Bitcoin mining activities have been expanding around the world during the last years. Miners get rewarded for their work processing transactions and receive Bitcoin (BTC) each time they find a block. In order to mine these digital assets, it is necessary to have specialized ASIC miners that consume large amounts of electricity. Most of the miners are located in China due to the low electricity price miners pay and because of the favorable temperatures the country has.