Bitcoin Sustainability Report November 2018

The Bitcoin price crashed again in November, leading up to the first significant drop in Bitcoin’s energy consumpion ever recorded. Although this may sound as good news, it’s not much more than a pyrrhic victory. In fact, it merely jumpstarts concerns regarding Bitcoin’s e-waste generation. According to F2Pool founder Mao Shixing 600,000-800,000 mining machines were shut down over the past few weeks. Given how these machines are hardwared for a singular purpose, becoming e-waste is their next stop. The highlights of the past month are as follows:

  • Mining revenues dropped more than 20 percent.
  • Mining revenue from transaction fees increased by 23 percent.
  • The average fee per single transaction was $0.54.
  • The total network power consumption decreased by almost 11 percent.
  • The average energy consumption per transaction was down by around 17 percent, and amounts to 684 KWh per unique transaction (enough to power 1 U.S. household for more than 23 days).

The full report is featured below:

Description Value Monthly change Trend
Mining Revenue
Average Bitcoin Price $5,435 -16.09%
Average Price Volatility 35.50% 17.12%
Mining Revenue from Fees $4,336,673 23.18%
Mining Revenue from Blocks Mined $318,138,799 -20.96%
Total Mining Revenue $322,475,471 -20.57%
Mining Costs
Total Costs of Mining $276,730,154 -10.88%
Percentage of Total Revenue 85.81% 12.21%
Total KWh Consumed 5,534,603,089 -10.88%
Network Statistics
Total Transactions Processed 8,093,101 7.89%
Average KWh Consumed per TX 684 -17.39%
Average Fee per Transaction $0.54 14.89%
Energy cost per TX (at 5 cents per KWh) $34.20 -17.39%
Average Network Hashrate (GH/s) 50,641,301,100 -10.36%
Average Network Effciency (J/GH) 0.15 2.71%
Bounds
Economic Maximum KWh Consumed 6,449,509,424 -20.57%
Technical Minimum KWh Consumed 4,206,904,142 -13.23%

Year to Date Performance

Apart from the changes in monthly performance, numbers on the current year to date (YTD) performance are found in the following table. These numbers show that Bitcoin has, so far, consumed as much energy as countries like Switzerland in 2018.

Description Value
Mining Revenue
Average Bitcoin Price $7,916
Average Price Volatility 63.29%
Mining Revenue from Fees $288,637,155
Mining Revenue from Blocks Mined $5,647,102,528
Total Mining Revenue $5,935,739,683
Mining Costs
Total Costs of Mining $2,924,729,712
Percentage of Total Revenue 49.27%
Total KWh Consumed 58,494,594,231
Network Statistics
Total Transactions Processed 72,976,504
Average KWh Consumed per TX 802
Average Fee per Transaction $3.96
Energy cost per TX (at 5 cents per KWh) $40.10
Average Network Hashrate (GH/s) 39,849,565,924
Average Network Effciency (J/GH) 0.18
Bounds
Economic Maximum KWh Consumed 118,714,793,661
Technical Minimum KWh Consumed 36,861,694,470

Disclaimer

Digiconomist is committed to promoting (the development of) sustainable blockchain technology. Blockchain protocols such as Bitcoin currently run on the energy-slurping proof-of-work algorithm (creating these proofs of work is better known as “mining”). The Bitcoin Energy Consumption index is a key tool that was created to provide insight into this energy consumption amount, and raise awareness on the unsustainability of the proof-of-work algorithm. The sustainability report uses historical data from the Bitcoin Energy Consumption Index to summarize the sustainability progress and performance of the Bitcoin protocol over the past month.

For a daily estimate of Bitcoin’s energy consumption make sure to visit the Bitcoin Energy Consumption Index.

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