HomeBitcoinEnergy consumption for Bitcoin mining reaches lowest point in two months

Energy consumption for Bitcoin mining reaches lowest point in two months

-


Highlights

Bitcoin mining-related energy consumption dropped to a two-month low on May 8, as rising power prices squeezed profitability. The S&P Global Commodity Insights Bitcoin Energy Consumption Index estimated network energy consumption at 916.89 MWh/bitcoin on May 8, the lowest level since March 7. This drop in energy consumption can be attributed to some miners opting out of participating in mining activities.

The recent volatility in bitcoin price and the early stages of development of layer-2 protocols have made it unclear how transaction fees will impact mining rewards in the short and medium terms. As bitcoin mining rewards reduce over time, transaction fees are expected to become a larger portion of mining profitability.

In Finland, bitcoin mining profitability has been out-of-the-money due to a spike in power prices caused by the extension of the annual maintenance of the Olkiluoto-3 reactor. The delay in maintenance overlapped with maintenance at other reactors, leading to a three-month high in day-ahead power prices on May 8.

On the other hand, bitcoin mining profitability has recovered in Sweden and Norway regions, despite low Nordic hydro stock levels. Strong renewable generation and subdued holiday demand in France and Spain have supported discounted power prices in those regions compared to the Nordic region.

Overall, the dynamics of bitcoin mining profitability are influenced by various factors such as power prices, maintenance schedules, and renewable energy generation. As the industry continues to evolve, miners will need to adapt to changing market conditions to remain profitable.

LATEST POSTS

TD Cowen says divided government is the best option for crypto in the November election

Potential Impact of Election Results on Crypto Assets, According to TD Cowen The upcoming November election could have significant implications for the crypto market, with...

Ethereum Revolutionizing the Music Industry: A Look at the Blockchain Powerhouse The Hype Magazine: Delving into Urban Culture – From Hip Hop to Hollywood! Discover...

Biz/Tech/NFTs: How Ethereum is Revolutionizing the Music Industry The rise of Ethereum in the music industry has been making waves, with its impact on music...

Bitcoin analysts predict that the price of BTC will decrease to $50,000 before a parabolic surge commences.

Bitcoin Double-Top Pattern Could Lead to Steeper Decline to $50,000, Analyst Warns Bitcoin's price could be heading for a steep decline to $50,000, according to...

Bitcoin briefly falls below $60,000 as SEC ends Ethereum investigation

Recent Developments in the Crypto Market: Mt. Gox Repayment, SEC Investigation, and ETF Filings The month of June has been a rollercoaster ride for Bitcoin,...

Most Popular