Bitcoin [BTC] emission intensity hits a new all-time low – Here’s why
- Bitcoin mining sustainability reached a new ATH, thus reducing gas emissions.
- Miners’ incomes are still at extremely low levels.
One problem Bitcoin [BTC] miners have faced are the complaints about energy draining and unsustainable greenhouse gas emissions on the environment. But as of press time, emissions intensity reached a new All-Time Low (ATL), according to a Woobull chart shared by Daniel Batten (a climate activist).
3 Map updates
1. New ATL (All Time Low)
Bitcoin is on track to 1/2 its emissions per KWh within 3.5 years
No other industry is reducing emission intensity so quickly
2 reasons:
1. Most miners now use sustainable energy sources
2. More efficient mining rigs pic.twitter.com/peRCykPck5— Daniel Batten (@DSBatten) 3 April 2023
How much is 1,10,100 BTCs worth today?
Thanks to the rigs and the energy
In his tweet, the climate technology activist and investor pointed out the reasons why the situation has changed. First, he mentioned that most miners had improved using sustainable energy resources. And secondly, there were more structured and efficient mining rigs.
Due to these factors, sustainable mining reached an All-Time High (ATH) of 54%. Crypto mining considers emissions and precise energy used to create power for the activity. This sometimes leads to carbon emissions that only have a smaller impact than coal-fired power.
Source: Woobull
But now that emissions intensity has reduced, it means that Bitcoin is effectively on its way to carbon neutrality. And according to Batten, it can reduce the impact on the environment by half in three years.
In addition, the Bitcoin investor also noted that the sustainability ATH had decreased slightly. And this has been an aftereffect of one increasing hash rate without significant mining activity. The daughter noted,
“The total emissions have increased from a fortnight ago. These are indirect emissions caused by electricity use (such as indirect emissions from electric cars). Bitcoin like electric cars has no direct emissions.”
Specifically, the Bitcoin hash rate refers to the total computational power used to mine and process transactions on the Proof-of-Work (PoW) consensus network. It also details the estimated number of hashes per second by miners on the Bitcoin network.
Source: Glassnode
Lately, the hash rate has been rising to new ATHs week in and week out as the BTC price continues an overall green performance. At the time of writing is the situation did not change based on Glassnode data.
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No savior yet for turnover
But has the fall in mining activity affected miners revenue or fees? At press time, total fees which does not include newly issued coins generated, remained at a low similar to the 2022 trend.
When it comes to the miners’ income, the decline was evident. The calculation measures income generated plus newly minted coins. According to Glassnode, revenues were down 870.90 BTC.
Source: Glassnode
For now, miners continue to struggle with the ups and downs of the industry. The recent BTC price swings have also played a role in this adjustment.
However, the widespread sentiment for significant recovery is the 2024 halving of Bitcoin when miners would receive 3,125 BTC in reward.
