How is the Bitcoin electricity consumption calculated?
In general, Zumo uses a model developed by Southpole and the Crypto Carbon Ratings Institute to calculate the electricity consumption of digital asset activity. This ‘hybrid approach’ looks at the electricity consumption of a network over a period of time and apportions this based on the holdings and transactions of a particular digital asset. We use publicly available data where this is available – in the case of Bitcoin, we use data from the University of Cambridge.
There may be some instances when it is more appropriate to apportion the electricity consumption to the purchase action of a digital asset. See our White Paper for further information on methodologies and when each may be used.