52% of Bitcoin Mining Is Sustainable Energy
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An editor at Coincrop
21 Feb 2023 | 6 min read
aniel Batten's analysis reveals that over half of Bitcoin mining is now driven by renewable energy sources! This suggests that the once-discredited industry may be far more sustainable than previously believed.
As the high-tech world of Bitcoin mining continues to develop at a rapid pace, an exciting finding was recently unveiled by one of the most prominent researchers in this field.
Daniel Batten, an independent analyst who reviewed the Cambridge Bitcoin Electricity Consumption Index (CBECI), discovered that three omissions on their website underestimated Bitcoin's renewable energy percentage by a whopping 13.6%.
Ultimately, the report's author concluded that Bitcoin mining is more than half sustainable, with 52.6% of its energy consumption coming from clean sources.
The CBECI conducted research that aimed to evaluate Bitcoin's power consumption, which had up until then been a source of major public concern.
To sum it up, the CCAF model excluded the following components.:
Off-grid mining (impact: plus 10.8%)
Flare-gas mining (impact: plus 1.0%)
Updated geographical hash rate (Kazakhstan miner exodus, impact: plus 1.8%)
Once all considerations have been accounted for, the sustainable energy mix calculation is 52.6%.
By 2019, the CCAF had established a long-term goal of expanding the scope of their Index to provide an extensive understanding of Bitcoin's influence on our planet. They have since worked hard to create fundamental elements which will equip us with this knowledge.
To guarantee the precision of data, researchers suggest simulating it with a modified model.
For Bitcoin's sustainable energy usage to remain below 50%, one of the following possibilities must be true:
Operating in secrecy, four extensive Bitcoin mining enterprises are powered entirely by coal energy sources.
According to an analysis by the Energy and Policy Institute, ERCOT (the operator of Texas’s electricity grid) drastically overstated its renewable energy figures - in fact, by a factor of four.
Although many miners abandoned Kazakhstan, the country's Bitcoin mining activity strengthened its global hash rate share from 13.2% to 20%, demonstrating a remarkable upsurge in interest and usage of cryptocurrency mining.
According to researchers, the CCAF findings — initially released in 2019 and now requiring updates — underlie these theories.
The development of reliable, data-backed techniques to confront the issues raised by the CCAF study presents a major opportunity for Bitcoin devotees to eliminate any hindrances blocking its adoption among Environmental, Social and Governance (ESG) investors. This breakthrough is set to revolutionize sustainable mining as we know it.
At long last, champions of Bitcoin have a legitimate metric to refute the CCAF study and make ESG investors more open-minded about cryptocurrency. With this data-driven method of understanding cryptocurrencies, there is no longer an obstacle in their path to investing.
Batten maintains that this could potentially influence policymakers who look over the report.
“Past the first hurdle, proponents of Bitcoin can ask the next two big questions that ESG investors and the White House have: Is Bitcoin’s macro-trend quantifiably moving toward sustainable energy? And is Bitcoin quantifiably a net positive to the environment and society?”
According to the Cambridge report, Bitcoin mining is more sustainable than originally thought. This leaves advocates and ESG investors with an opportunity to argue that proof-of-work cryptocurrency could be a leader in green energy adoption across all industries. With this new evidence, it's only right that Bitcoin should take its rightful place at the forefront of sustainability initiatives worldwide!
MikeAn editor at Coincrop
Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.
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