- September 22, 2023
- Posted by: [email protected]
- Category:
According to recent Bloomberg research, Bitcoin’s evolving energy landscape has been described as an accomplishment that few industries can boast. Despite the continuous growth of Bitcoin’s hash rate, the cryptocurrency’s emissions intensity has been steadily declining, a departure from the trajectory of most other sectors.
Over the years, the Bitcoin network has expanded significantly, yet the carbon footprint of its mining industry has remained relatively subdued. Bloomberg analyst Jamie Coutts argues that this unique achievement positions Bitcoin as a pioneer in environmental responsibility, a claim that is rare among industries of its scale.
This remarkable transformation in Bitcoin’s energy dynamics may prove to be a catalyst for the next wave of institutional investment. On September 20th, Jamie Coutts revealed data indicating that the proportion of sustainable energy used in Bitcoin mining has been on the rise since 2021 and now exceeds 50%. As a result, emissions growth has slowed compared to the network’s expansion.
Coutts highlighted the symbiotic relationship between Bitcoin’s growth and the global shift away from fossil fuels, emphasizing that this dynamic could attract substantial institutional and even sovereign investment. Given that energy accounts for more than 50% of mining operational costs, the pursuit of cost-efficient energy sources has propelled the network’s hash rate upward while concurrently reducing its carbon intensity.
In essence, if Bitcoin scales to accommodate hundreds of millions of users, its impact on global carbon emissions is projected to be minimal. Additionally, Bitcoin technology is poised to play a pivotal role in the global transition towards cleaner energy sources.
It’s important to clarify the terms used in this context. Energy emissions refer to the release of greenhouse gases and air pollutants stemming from various energy sources and activities. Carbon intensity, on the other hand, measures the cleanliness of the electricity used.
Recent reports have indicated a growing focus on alternative energy sources among the next generation of Bitcoin miners. However, the percentage of sustainable energy utilized in Bitcoin mining remains a topic of debate. While Cambridge University’s model, last updated in January 2022, suggests that only 37.6% of Bitcoin mining relies on sustainable energy, climate technology venture investor Daniel Batten contends that this figure exceeds 50%. Batten argues that the Cambridge figures are skewed due to the exclusion of off-grid mining and methane mitigation from their calculations.
Batten’s research reveals that the emissions intensity of Bitcoin mining has reached its lowest-ever level, and he predicts that the Bitcoin network will achieve carbon neutrality by December 2024. Astonishingly, Batten asserts that by 2030, the Bitcoin network will mitigate ten times more emissions from the atmosphere than it produces, marking a monumental achievement in the realm of sustainability and environmental responsibility.
