Bitcoin’s (BTC) Energy Consumption Drops from All-Time High

The closely watched Bitcoin (BTC) Energy Consumption Index has edged lower after reaching an all-time high of 1,312.07 MWh per BTC mined earlier in February.

The higher energy consumption is due to a growing number of Bitcoin miners trying to secure the digital asset. Large banks of computers are used to mine Bitcoin around the clock, solving complex mathematical equations and puzzles that are needed to mint new BTC.

Those banks of computers consume a substantial amount of electricity, which has been one of the main criticisms of cryptocurrency mining. The Bitcoin Energy Consumption Index reflects the energy consumption per Bitcoin mined. It peaked at an all-time high earlier in February as interest in cryptocurrencies grows.

Alternative Energy Sources

Bitcoin mining has risen around the world in recent months as the price of the largest digital asset by market capitalization has increased. Countries that have seen spikes in Bitcoin mining include the U.S., Norway, Germany and Spain. While Bitcoin mining increases, so too have efforts to curtail energy use, say analysts.

Some miners are turning to renewable solar power to help power the banks of computers they use to produce new Bitcoins and other cryptocurrencies. Other miners are curtailing their activities during periods of peak electricity use and selling excess power back to electrical grids. These measures have helped bring down the amount of power used to mine Bitcoin, say analysts.

Bitcoin’s price has risen 99% over the last 12 months.

Is BTC a Buy?

Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 8.45% in the last 12 weeks.