Cambridge University has revised its Bitcoin Electricity Consumption Index (CBECI) methodology to more accurately reflect the energy demands of Bitcoin mining. The previous model assumed that all miners contributed equally to the network’s hash rate, but this was found to be inaccurate due to major advancements in bitcoin mining hardware. The new model takes into account the computing power of different mining machines and factors in the profitability and depreciation of mining equipment. The revised CBECI provides a more accurate estimate of Bitcoin’s energy footprint. This change in methodology has led to a lower estimate of Bitcoin’s energy consumption, with JPMorgan lowering its bitcoin production cost estimate as a result.
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