Cambridge Bitcoin Electricity Consumption Index (CBECI), a renowned institution providing real-time electricity consumption estimates, has completed revising the computation approach. The successful reassessment aims to improve the index estimates’ accuracy and reliability.
Since 2019, the CBECI has supported Bitcoin mining activities by providing data on estimated energy consumption and the environmental impact of the mining activity.
CBECI Index Revised
The report explained that the Index is critical in estimating the energy required to support Bitcoin mining activities. The Index ensures that the data generated are easy to comprehend in a layman language.
The head of research at CBECI, Alexander Neumueller, shared a comprehensive report on the role of the Indexes. The executive explained the need to enhance the accuracy of the Index.
Neumueller also shared the process for revising the Index’s methodology. He stated that in the completed revision of the Index, the CBECI team focused more on integrating the recent developments in Bitcoin mining facilities and hash rates.
The executive stated that the CBECI team focused more on changes in the Bitcoin mining activities. While reevaluating the Bitcoin ecosystem’s dynamism, some researchers demanded known factors contributing to the increase in hash rates. The research also noted that most Bitcoin miners are seeking to replace the old hardware with new ones to increase the computing power.
Despite the drastic changes, the researcher realized that there was insufficient hardware for data centers. The shortage of hardware posed a threat to miners, analysts, and businesses.
The researchers complained that the scarcity of hardware has undermined the efforts made by CBECI to examine the hardware commonly used by the miners. These shortcomings challenged the CBECI team to develop a methodology that assesses the hardware’s performance and power consumption data.
Benefits of Revising CBECI Index’s
Unlike the old methods, the new approach will enhance daily hardware distribution. The research outlined the assumptions on the old techniques that resulted in a “disproportionately large number” of old mining facilities.
Initially, the method assumed that the recently produced hardware for profit purposes increased the total network hash rates. They noted that the hardware created within the last five years was more underrepresented than the old hardware, which was overrepresented.
The difference between the old and the new hardware forced the CBECI to change the methodology. In the latter, Neumeller stated that his research team compared the increase in hash rates within the US import data that received new Bitcoin mining hardware.
The researchers also reviewed the public sales report from Canaan, a mining hardware manufacturer. From reviewing the available data, the research used their findings to test the hypothesis.
They noted that the newly launched mining hardware seeks to increase the network hash rates. The researchers combined the data from US import reports and Canaan sales to validate the hypothesis.
The head of research lamented that lack of information creates biasness and undermines data accuracy. The CBECI has integrated solid data centers and visualization tools such as Index to assess the distribution of Bitcoin mining hash rates and the emission of greenhouse gasses.
Even though Bitcoin mining has been linked to climatic changes by environmentalists, Bitcoiners still hold high hopes that mining activities will address climatic changes and offer societal benefits.
