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Mining facilities There is no typical size of cryptocurrency mining operations, but a wide scale ranging from students who do not pay for their electricity (some of whom applied to support this research),23 to gamers who leverage their graphics cards whenever they are not playing (as reflected in Nvidia’s volatile sales allocated to crypto),24 all the way up to dedicated, large-scale crypto-mining farms (for instance, in abandoned olivine mines in Norway).25 Depending on the scale of mining operation, auxiliary efficiency losses may occur in addition to hardware losses. The two main categories of auxiliary losses are cooling and IT-equipment. We classify miners into three groups according to the scale of their operation: small (S) miners provide less than 0.1 PH/s (equal to seven of the most efficient ASICs), medium (M) miners provide less than 10 PH/s, and large (L) miners provide more than 10 PH/s. This classification is based on our personal communications with miners. For large-scale miners, we use the power usage effectiveness (PUE) of Google’s most efficient data center of 1.09.26 For medium-scale miners, we use a PUE of 1.15, based on personal communication with mining companies in Germany. For small-scale miners, we assume a moderate efficiency of 1.12, as higher losses from dust and cable inefficiencies are more than offset by the lack of a need for cooling. We determine the distribution among these three categories using Slushpool data, displayed in Figure 2. Slushpool is a mining pool with an 11% market share, which provides live statistics on the computing power of connected users.27 By assuming that distribution is the same in the rest of the network, we determine that 8% are small, 27% are medium, and 65% are large-scale miners, resulting in an overall PUE of 1.11 (see Supplementary Notes Sheet 2 for a sensitivity analysis of this assumption). 4PDF Image | The Carbon Footprint of Bitcoin
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