Over 52.6% of Bitcoin mining is now powered by sustainable energy
Amidst the rapid development of the high-tech and ever-evolving landscape of Bitcoin mining, an exciting discovery has emerged from one of the industry’s leading Bitcoin energy researchers.
According to Daniel Batten, author of the Cambridge Bitcoin Electricity Consumption Index (CBECI), three exclusions mentioned on their website have underestimated Bitcoin’s sustainable energy percentage by 13.6%.
When everything is properly tallied, says the author of the original study, Bitcoin’s energy sustainability teeters above the 50% mark, with 52.6% of Bitcoin mining being done sustainably.
The research conducted by CBECI was introduced to deploy a data-based analysis of Bitcoin’s power usage and was previously met with growing public concern about the issue.
In summary, the CCAF model did not take into account the following:
- Off-grid mining (impact: plus 10.8%)
- Extraction of flare gas (impact: plus 1.0%)
- Updated geographic hash rate (exmigration of miners from Kazakhstan, effect: plus 1.8%)
With all exclusions included, the sustainable energy mix calculation is 52.6%.
Since 2019, CCAF’s efforts to expand the scope of the index have aimed to provide the fundamental elements required for a comprehensive understanding of Bitcoin’s impact on the environment.
How can we be sure that the data is accurate?
The answer to this question can be simulated using a revised model, according to researchers.
For Bitcoin’s true sustainable energy use to be below 50%, at least one of the following scenarios must be true:
- Four major Bitcoin mining operations secretly run on 100% coal-based energy.
- ERCOT (the operator of Texas’ electricity grid) has overreported its true renewable energy figures by a factor of four.
- Despite the widely reported exodus of miners from Kazakhstan, the demand for Bitcoin mining increased its share of the global hashrate from 13.2% to 20%.
Researchers say these are based on findings from the original CCAF findings – which date back to 2019 and now need to be revised.
What this means for sustainable mining
With the emergence of a legitimate, data-driven approach to address the concerns raised by the CCAF study, Bitcoin advocates may finally be able to remove the roadblock preventing Bitcoin’s adoption among environmental, social and governance (ESG) investors.
“For the first time, Bitcoin advocates have a legitimate, data-driven way to remove the roadblock that the CCAF study has created in the minds of ESG investors for some time.”
The author argues that this can also influence decision-makers who look at the report.
“Past the first hurdle, Bitcoin supporters can ask the next two big questions that ESG investors and the White House have: Is Bitcoin’s macro trend moving quantifiably toward sustainable energy? And is Bitcoin quantifiably a net positive for the environment and society?”
With the Cambridge Report’s revised findings on the sustainability of Bitcoin mining, Bitcoin advocates and ESG investors can argue that the original proof-of-work cryptocurrency is primarily sustainable, potentially positioning it as a leader in sustainable energy adoption across all industries.
Disclaimer: Our authors’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Do your own due diligence before taking any action related to the content of this article. Finally, CryptoSlate takes no responsibility if you lose money trading cryptocurrencies.
