Bitcoin Network Power Demand Drops to 10.65 GW as Hash Rate Sees 14% Drop

Bitcoin Network Power Demand Drops to 10.65 GW as Hash Rate Sees 14% Drop

Overall Bitcoin (BTC) network power consumption posted a drastic drop after mimicking the two-week drop in mining hash ratewhich reduced the scrolling power to mine BTC blocks to 199,225 exahashes per second (EH/s).

According to data shared by the Cambridge Center for Alternative Finance, the Bitcoin network recorded the lowest energy demand of the year 2022 of 10.65 gigawatts (GW). At its peak, the BTC network demanded 16.09 GW of power.

Energy demand of the Bitcoin network from 2018-2022. Source: ccaf.io

On June 16, a Cointelegraph report highlighted how the banking sector uses 56 times more energy than the Bitcoin ecosystem. Publisher Michel Khazzaka, an IT engineer, cryptographer, and consultant, said in an exclusive interview:

“Bitcoin Lightning and Bitcoin in general are really great and very efficient technology solutions that deserve to be adopted on a large scale. This invention is brilliant, efficient, and powerful enough to achieve mass adoption.”

The sudden reduction in Bitcoin energy demand can be attributed to the hash rate drop. Mining hash rate serves as a key security metric, the computing power required by BTC miners to successfully mine a block.

Bitcoin Network Power Demand Drops to 10.65 GW as Hash Rate Sees 14% Drop
Bitcoin hash rate chart for 2022. Source: blockchain.com

Bitcoin mining difficulty reached an all-time high of 231,428 EH/s on June 13, followed by a drop of more than -13.9% in two weeks. The latest breakdown of the hash rate distribution shows F2Pool and AntPool as the largest known miners, with 81 and 80 blocks each mined in the last four days, respectively.

A group of federally funded researchers designed a class of stablecoin called the Electricity Stablecoin (E-Stablecoin) that would transmit energy as a form of information.

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As Cointelegraph explained, the E-Stablecoin would be minted by inputting one kilowatt-hour of electricity, plus a fee, which could then be used for transactions in the same way as any stablecoin.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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