Usage of sustainable energy for Bitcoin mining increases by nearly 60% in a year

According to the most recent Bitcoin Mining Council report, the mining industry is rapidly adopting sustainable energy sources in order to secure the largest crypto blockchain. Bitcoin (BTC) mining companies are increasing their use of green energy, with the global Bitcoin mining industry increasing its sustainable energy mix by approximately 59% year on year.

The Bitcoin Mining Council (BMC) is a group of 44 Bitcoin mining companies that claim to control 50% of the global Bitcoin network, or 100.9 exahash (EH). It published the findings in a new report on Monday. Michael Saylor, the CEO of MicroStrategy, is also a proponent of Bitcoin and is also in support of the group.

The most recent BMC member companies survey asked how much electricity their businesses consumed, what percentage of that electricity was generated by hydro, wind, solar, nuclear, or geothermal sources, and what their hash rate was.

According to the BMC, the global mining industry’s sustainable electricity mix for the top crypto is now 58.4 percent, a 0.1 percent decrease from the previous quarter. Perhaps more importantly, it represents a significant increase from the estimated 36.8 percent renewables in Q1 2021.

It’s worth noting, however, that the BMC was only formed in June 2021, so it’s unclear how it arrived at the 36.8 percent renewables estimate for Q1 2021.

The new report’s data, which was self-reported by BMC members, revealed that they used electricity with a 64.6 percent sustainable power mix. The figures for global Bitcoin mining were derived from data provided by BMC members.

According to Earth Day analysts, Bitcoin mining is naturally gravitating toward green energy.

Bitcoin has been chastised for its high energy consumption and high carbon footprint, and the mining industry is keen to demonstrate its use of greener energy sources or byproducts wasted from other operations to counter the criticism.

The figures provided by BMC contradict a February study published in the scientific journal Joules, which found that crypto mining contributed to a 17% increase in carbon emissions produced by Bitcoin network operations.

The report breaks down total estimated energy usage by industry, alleging that global Bitcoin mining operations consume 247 terawatt-hours (TWh), which is less than half of what gold mining operations consume and 0.16 percent of total global energy usage.

Global Bitcoin mining in comparison to other industries

According to the results of self-reported electricity consumption and company hash rates, mining efficiency appears to have increased.

Over the last year, the industry’s electricity consumption has decreased by 25% while the hash rate has increased by 23% from 164.9 to 202.1, resulting in a 63 percent increase in mining efficiency since Q1 2021. According to the BMC, Bitcoin mining is 5,814 percent more efficient than it was eight years ago.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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