Crypto bear market has brought Bitcoin’s energy consumption to a one-year low

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Crypto bear market has brought Bitcoin’s energy consumption to a one-year low
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  • The crypto market’s bearish run has reduced Bitcoin’s energy consumption to 130.5TWh and lower.
  • This is the least amount of energy the Bitcoin network has consumed over the past year.
  • Ethereum’s energy consumption along with other cryptos have also dropped amid the market’s nosedive.
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The crypto market's recent nosedive is also wiping off Bitcoin’s energy footprint from the world. While the energy footprint is surely going to go back up once the market bounces back, for the time being, the total energy consumed by the Bitcoin blockchain network has declined to a one-year low, according to Digiconomist.

This collective computing power, though, consumes a large amount of energy, most of which is generated using fossil fuels. According to energy consumption trackers like Digiconomist, the total energy consumed by Bitcoin dropped from around 204.5 terrawatt-hour (TWh) per year earlier this month to 130.5 TWh on June 19, which is the lowest it has been in one year.

Digiconomist’s tracker isn’t the only one to see such signs either. The Cambridge Bitcoin Energy Consumption Index, which tracks the network’s consumption on a real-time basis, showed that the daily power consumed by the network dropped to 14.93 gigawatts (GW) on June 11, and further to 10.57 GW on June 25, which is a total fall of around 30% through the month.

The Bitcoin network’s energy consumption has been one of the chief concerns for the community and experts alike. The blockchain network uses something called a proof-of-work (POW) consensus system, in which all miners are allowed to apply their computing power to validate a transaction.

In comparison, proof-of-stake (PoS) systems used by blockchain networks like Polygon, Cardano, and others consume less energy than Bitcoin. Ethereum, too, introduced the PoS system on its network last year and is expected to complete its full transition by the end of this year.

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In comparison to Bitcoin, Digiconomist’s tracker shows that Ethereum was consuming around 94 TWh on June 1, which dropped to nearly half by June 18.

While it is no surprise that the market’s bearish run is dropping the energy footprint, it could present a chance for the industry to move towards more energy-efficient networks, which use the PoS system over the PoW technology.

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