Energy Consumption and Bitcoin Market

Huynh, Anh Ngoc Quang; Duong, Duy; Burggraf, Tobias; Luong, Hien Thi Thu; Bui, Nam Huu

doi:10.1007/s10690-021-09338-4

Cited by 51 publications

(18 citation statements)

References 48 publications

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“…e following week, miners' precious DOGE could be worth nothing but a $5 bill. Here are some other concerns you should consider: increased wear and tear on your hardware [38,39]. Mining requires your laptop to be continuously running for hours and hours on end, which can affect the lifespan of your system's internals [39].…”

Section: Methodsmentioning

confidence: 99%

“…Electricity laptops packed with powerful GPUs typically do not have the best battery life, which means miners have to keep it plugged in all day. Consider how this affects their electricity bill [39]. It may affect overall profitability unless they altruistically want to contribute their resources to the Dogecoin blockchain, even if you're operating at a loss, to help verify transactions and maintain its integrity [40].…”

Section: Methodsmentioning

confidence: 99%

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Mining Cryptocurrency-Based Security Using Renewable Energy as Source

Gundaboina

Badotra

Bhatia

et al. 2022

Security and Communication Networks

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Cryptocurrency mining and blockchain technology using renewable energy as the main electricity source has gained attention for sustainable development in financial areas. However, very few studies have been reported concerning the power usage of cryptocurrencies using renewable energy. In this article, we report the effect of overclocking and undervolting on power usage and the hash rate for mining dogecoin with solar energy as renewable energy. The mining rig used in this work consists of different graphics processing units (GPUs) and non-LHR (lite hash rate) cards. The UnMineable software has been used for mining dogecoin as well as for wallet integration. The results indicate that mining dogecoin with solar energy as renewable energy consumes 2000 Watts power with overclocking and 1700 Watts power with undervolting technique. This work implicates the potential future of crypto-mining with renewable energy and the hardware configuration associated with it, which is expected to reduce e-waste and improve sustainable development. To reduce the e-waste and high electricity consumption, we have introduced two important techniques named GPU optimization and use of renewable energy for mining, which helps the miners to reduce the e-waste and electricity consumption significantly at the same time getting most out of the GPU by not having any impact on the environment.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Mining Cryptocurrency-Based Security Using Renewable Energy as Source

Gundaboina

Badotra

Bhatia

et al. 2022

Security and Communication Networks

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“…However, among the selected newspapers, they stated that The Wall Street newspaper had a relatively effective effect on the prediction of bitcoin price compared to other newspapers in the same group. Huynh et al, (2022) conducted a study analyzing the relationship between bitcoin energy consumption and market price. They determined that there is a relationship between Bitcoin energy consumption and return and volume.…”

Section: Literaturementioning

confidence: 99%

Bitcoin Elektrik Tüketimi ile Küresel Ekonomik Politik Belirsizlik Endeksi (GEPU) Arasındaki İlişkinin Analizi

SİZER

YILMAZ

2022

International Journal of Business and Economic Studies

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It is possible to define uncertainty as the variability of conditions, the ambiguity and obscurity of statements and events. Uncertainty, for whatever reason, affects the economy in different ways. Uncertainty causes people to be more concerned about their future income. Various estimation and methods have been developed in recent years to calculate the uncertainty, which is equivalent to the concept of uncertainty. These indices, in which economic and political uncertainties are calculated, appear as a form of calculation that also includes political discourses along with financial risk. The aim of this study is to examine the causality relationship between the Global economic political uncertainty index and Bitcoin electricity consumption. For this purpose, the Toda-Yamamoto causality test was applied using data from the period 2011:M7-2022:M1. According to the obtained Toda-Yamamoto causality test findings, Granger causality relationship has been determined both from the global economic-political uncertainty index to Bitcoin electricity consumption and from Bitcoin electricity consumption to the global economic-political uncertainty index.

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“…Easley et al (2019) and Tsang and Yang (2021) examined the economics of transaction fees and concluded that transaction fees increase when transaction congestion occurs. The rest of the articles used in this paper have focused on Bitcoin mining energy consumption (Das and Dutta, 2019;de Vries, 2020;Corbet et al, 2021;Huynh et al, 2022), carbon footprint (Stoll et al, 2019;Polemis and Tsionas, 2021;Di Febo et al, 2021) and sustainable mining (Truby, 2018;de Vries, 2019). Das and Dutta (2019) concluded that the Bitcoin mining business is not sustainable unless efficient mining and cheap electricity sources are relied upon.…”

Section: Introductionmentioning

confidence: 99%

“…De Vries (2020) found that the energy consumption of Bitcoin is underestimated and proposed a new model to better capture Bitcoin energy consumption. Corbet et al (2021) and Huynh et al (2022) investigated the relationship between Bitcoin price and electricity consumption using different approaches. Nevertheless, they found a positive relationship between Bitcoin price and electricity consumption, suggesting no financial incentives for miners to switch to sustainable electricity sources.…”

Section: Introductionmentioning

confidence: 99%

Bitcoin Transaction Fees, Miners' Revenue, Concentration and Electricity Consumption: A Failing Ecosystem

Rech¹,

Yan²,

Bagonza³

et al. 2022

Prague Economic Papers

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The research and investment community seems to ignore the long-term sustainability of Bitcoin, which is reflected in four flaws: transaction fees, miners' revenue, concentration and electricity consumption. While most of the authors have aimed to examine one topic at a time, with a particular interest in electricity consumption and carbon footprint, the aim of this paper is to examine all these issues simultaneously to provide a more comprehensive view on long-term sustainability of Bitcoin. This paper looks at these flaws and reveals why Bitcoin is not sustainable in the long run, how decentralization is being lost, how the design is putting artificial and unrealistic pressure on the ecosystem, while all being powered by an unjustifiable amount of dirty electricity sources. Our main findings are as follows. Firstly, transaction fees are already high and set to increase in time, further discriminating small transactions against big ones. Secondly, miners' revenue comes mostly from the block reward. The block reward is the main income source for miners, but is set to be cut on a regular basis, making miners' revenue not sustainable in the long run. Thirdly, miner concentration is already an issue, with a possibility of deepening even more and diminishing the idea of decentralization. Fourthly, the high electricity demand and the associated carbon footprint thus cannot be justified by any means. We deem our results useful for overall policy and regulatory implications.

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Energy Consumption and Bitcoin Market

Cited by 51 publications

References 48 publications

Mining Cryptocurrency-Based Security Using Renewable Energy as Source

Mining Cryptocurrency-Based Security Using Renewable Energy as Source

Bitcoin Elektrik Tüketimi ile Küresel Ekonomik Politik Belirsizlik Endeksi (GEPU) Arasındaki İlişkinin Analizi

Bitcoin Transaction Fees, Miners' Revenue, Concentration and Electricity Consumption: A Failing Ecosystem

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