Since the inception of Bitcoin, the network has been based on the mechanism of proof of work and the confirmation of its transactions has required energy. The Bitcoin Energy Consumption Index provides a better view of the amount of energy used to extract bitcoin and verify its transactions.
Accurate calculation of bitcoin network power consumption requires information such as the model of miner devices present in the network, the power consumption of each of them and the number of devices. It is almost impossible to obtain this information, so there are assumptions in each of these parameters, as a result of which the calculation is performed as an estimate.
The Bitcoin Energy Consumption Index is one such example that has its own basic assumptions. In this infographic, we will learn more about how to calculate the energy consumption of the Bitcoin network by this indicator.