Despite the huge energy consumption, recent research has shown that Bitcoin mining is environmentally friendly. The report has shown that Bitcoin has progressed to 52.6% sustainable energy.
The research also shows that worries about the high emissions of Bitcoin have dropped. The key change was noted after China banned crypto mining. It cited high energy consumption as one of the reasons for the ban.
According to the report, network emissions are experiencing a downtrend, despite increases in electricity and Bitcoin hash rate. Miners’ switch to sustainable energy is vital to these positive changes.
Sustainable energy is measured by the ability to use proceeds from a form of power repeatedly without causing harm to the source. The most popular sustainable energy source is renewable energy, including wind, solar, and hydropower.
Bitcoin Mining Becomes More Emission-Efficient
The current Bitcoin mining emissions have reduced drastically compared to its energy consumption. As innovations arose, the amount of carbon dioxide the mining machines produced diminished. Bitcoin mines produce below 350 grams of CO₂ per kilowatt hour (<350g/kWh), down from over 400g/kWh precisely one year ago.
Bitcoin has also broken the global financial system status quo, where GPD growth is usually followed by increased emissions. The market cap emission per dollar is decreasing as Bitcoin has grown significantly without increasing CO₂ emission.
Statistics Defy Bitcoin Energy Perception
Many sources have questioned the energy sustainability of the biggest cryptocurrency in the world. Reports had it that the CO₂ emission intensity per kilowatt-hour is increasing yearly. The figures were speculated to be 506.71gCO₂e/kWh in 2021 from 491.24gCO₂e/kWh in 2020.
However, recent statistics have countered this perception. Even with the 1,499kWh of energy consumed by the asset, the ever-increasing price of bitcoin has relatively compensated for the energy consumption.
The emission graph released by this report has also countered the initial research done in that regard. Thanks to miners’ switch to renewable energy, Bitcoin is now suitable for the environment.
