A study conducted by Batcoinz reveals that more than 50% of Bitcoin mining uses renewable energy sources. The percentage is higher than in any other sector. Next come the banking sector and the industrial sector, with 39.2% and 32% respectively.
This data is important because Bitcoin mining is often criticized and treated as synonymous with pollution. An example is the frequent attacks by Greenpeace, calling for a change to the BTC code.
Another detail is that the hashrate of the Bitcoin network is at its peak. In other words: more and more machines are being used, but miners are looking for sustainable alternatives even in the most remote places in the world.
New data on sustainability in Bitcoin mining
When it comes to mining, studies from the University of Cambridge have always been highlights. However, the institution itself acknowledges that its data is almost two years out of date.
“Your mining card ‘lost its pulse’ in January 2022. This means that your model is 22 months out of date at the time of writing”notes Batcoinz, responsible for the new study. “22 months ago, Kazakhstan, a country based almost entirely on fossil fuels, had 13.2% of the global hashrate. Today that has fallen to just 100 MW, well less than 1% of the total network.”
Using a new model, the Batcoinz study claims that Bitcoin mining uses 52.6% renewable energy. In contrast, the gold industry uses only 12.8%. Between these two are the banking (39.2%), industrial (32%) and agricultural (19.6%) sectors.
“The Bitcoin network uses more than 50% renewable energy, making it the largest user of renewable energy in the world.”
Other data presented shows that the hash rate has grown 400% in the last four years. Despite increasing competition, mining remained focused on sustainability.
“This makes Bitcoin the only global industry where industry growth has not led to an increase in emissions.”
Bitcoin miners are looking for cheap energy
Since energy costs are the largest expense for Bitcoin miners, these companies are always looking for solutions to reduce these costs. For example, TeraWulf announced earlier this year that one of its parks in the US will use 100% nuclear energy.
Others go even further and look for cheap energy in isolated countries that has nothing to do with the excess energy generated, except that it is wasted. Iceland, famous for generating energy from volcanoes, has become a destination for mining companies.
“Bitcoin miners are in a unique position to purchase energy that would otherwise be wasted”points to a Bloomberg Originals documentary, shown below. “There is a lot of carbon-free energy available and that is something Bitcoin miners are looking for.”
Despite some creative solutions, hydropower plants are still the largest suppliers of green energy for Bitcoin miners, accounting for 23.5% of the supply. Next come coal and gas, which are considered a dirty option.
Nuclear, wind and solar energy appear soon after, showing that the mining sector is taking advantage of all the opportunities. By comparison, the Batcoinz study indicates that Bitcoin mining uses more renewable energy than electric cars.
“We know that Bitcoin’s main fuel source is hydropower. This makes it the only global industry whose main energy source is not fossil fuels.”
Finally, mining is an important part of Bitcoin security. The higher the hash rate, the more expensive attacks on the network become. The full research can be read on the Batcoinz website.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
