Recent reports suggest a significant shift toward sustainability in Bitcoin mining, with more than half of the energy used now coming from renewable sources.
Research led by Bloomberg’s Jamie Coutts reveals that the portion of sustainable energy sources in Bitcoin mining has crossed the 50% mark.
This pivot towards cleaner energy is in stark contrast to prevalent criticisms about the cryptocurrency’s adverse environmental impact.
Daniel Batten of Coinmetrics, along with Jaran Mellerud, has conducted supplementary research that refines the data on Bitcoin’s energy consumption.
Their revised estimate for 2022 places Bitcoin’s electricity usage at 95.5 terawatt-hours (TWh), a noticeable reduction from a previous calculation of 105.3 TWh.
This downward revision is primarily due to enhanced accuracy in assessing the energy efficiency of Application-Specific Integrated Circuit (ASIC) machines commonly used in Bitcoin mining.
China’s decision to ban Bitcoin mining in mid-2021 has yielded a surprise environmental benefit.
Carbon emissions from Bitcoin mining operations have plummeted by 37.5% since the ban took effect. Even as the Bitcoin network’s computational power, or hashrate, has quadrupled since 2019, the rise in associated carbon emissions has been a modest 6.9%.
This data suggests that worries surrounding Bitcoin’s environmental footprint may have been overstated.
The transition to greener energy sources could profoundly impact global energy dynamics, as energy expenditures make up nearly half of the operational costs for Bitcoin miners.
Mining operations have begun to serve as a financial incentive for countries to harness and monetize surplus energy from sustainable sources like wind, solar, and nuclear power.
This trend aids the global transition away from fossil fuels and contributes to the modernization and stabilization of energy grids worldwide.
With the continued improvement in energy efficiency and a substantial shift toward sustainable power sources, Bitcoin mining is gradually shedding its reputation as an environmental malefactor.
This transformation not only alleviates previous criticisms but also opens up new avenues for the industry’s integration into a greener global economy.
BuyBitcoinWorldWide writers are subject-matter experts and base their articles on firsthand information, like interviews with experts, white papers or original studies and experience. We also use trusted research and studies from other well-known sources. You can learn more about our editorial guidelines.