Bitcoin miners can reduce electricity consumption without increasing computational output when their hardware uses fewer joules per terahash. In a worked example calculated by BitcoinVersus.tech, improving efficiency from 20 J/TH to 15 J/TH at a constant 200 TH/s lowers daily energy consumption by 25%. The figures illustrate the relationship between efficiency and electricity use, rather than results from a hardware test.

Hashrate measures computational speed, while J/TH measures the energy required to perform one trillion hashes. Multiplying TH/s by J/TH gives joules per second, equivalent to watts. BITMAIN provides separate inputs for hashrate, power efficiency, power consumption and electricity rates in its mining calculator. Keeping those quantities separate helps explain why a higher hashrate alone cannot establish a machine’s electricity requirements.

The U.S. Energy Information Administration explains that one kilowatt equals 1,000 watts, while one kilowatt-hour represents one kilowatt used for one hour. A miner drawing 4,000 watts continuously for 24 hours therefore consumes 96 kWh. Applying an illustrative energy rate of $0.06 per kWh produces a daily electricity charge of $5.76.

At 200 TH/s and 15 J/TH, calculated power falls to 3,000 watts. Running for the same 24 hours consumes 72 kWh and costs $4.32 at the assumed rate. The difference is 24 kWh and $1.44 per day, equivalent to $43.20 over 30 uninterrupted days. BitcoinVersus.tech calculated the comparison using fixed output, constant efficiency and an unchanged electricity rate. The example excludes additional charges and equipment beyond the miner.

The distinction gives readers a practical way to interpret Bitcoin ASIC architecture and the energy inputs discussed in the Power Efficiency Index. An electricity calculation measures consumption under stated assumptions. A valuation model introduces separate assumptions about how physical performance relates to market value.

Lower electricity consumption alone does not establish mining profitability. BITMAIN notes that its revenue estimates depend on current network difficulty and may differ from actual results. Its calculator also includes other costs. Readers comparing equipment should distinguish an estimated energy charge from the full cost of operating a miner.

Related video A separate miner demonstration compares stock firmware with Braiins OS. The video provides additional viewing context; its results are not used in the calculations above.