Bitcoin miners' use of sustainable energy has reached a new all-time high, reaching 54,5% clean energy.
Bitcoin mining, which has been criticized for its energy consumption for years, is la only major global industry that runs primarily on sustainable energyThis was stated by environmentalist and ESG investor Daniel Batten in the third edition of his report “The Bitcoin ESG Forecast”.
The report highlights that Bitcoin mining grew 3,6% overall compared to sustainable energy use last year, bringing the cryptocurrency closer to acceptance among ESG institutional investors.
New all-time highs for Bitcoin
This year, the leading cryptocurrency by market capitalization and the most robust and secure blockchain network in the world has recorded two new all-time highs, related to its energy consumption.
According to Batten, the leading cryptocurrency and blockchain is becoming greener every year, meaning that every year, Bitcoin mining has been reducing its carbon emissions To the environment.
Batten compared Bitcoin mining to electric cars, noting that 100% electrified industries like these have lower emissions intensity year over year.
“Together, that means that today, Bitcoin miners on the network are using networks that are 29% greener than in 2021.”, the report highlighted.
The ESG expert also explained that this was thanks to the bans imposed by China and Kazakhstan, which were the two largest Bitcoin miners and which forced BTC miners with their new rules to move mainly to greener networks in other parts of the world, such as in North America and Latin America, or to sustainable locations outside their energy infrastructures.
Bitcoin mining companies have been expanding into the use of sustainable energy, such as hydroelectric, nuclear, wind and geothermal, in countries such as United States, Paraguay y El Salvador.
Use of methane emissions
The second all-time high that Bitcoin has recently set is related to the use of methane emissions for the production of alternative electrical energy.
According to Batten, the network of Bitcoin is mitigating 7,3% of all methane emissions without offsets, by using vented methane from the oil industry and gas exploitation to power generators that create electricity to mine the cryptocurrency.
One source, who asked to remain anonymous, told Batten that oil and gas companies often prefer to “release methane emissions directly into the atmosphere” rather than pay a permit to burn stranded natural gas. This is because it is harder for authorities “to detect a vent than a flare.”
However, Bitcoin mining, far from contributing to environmental damage as many believe, is helping to reduce these dangerous emissions and protect the environment.
“We discovered new evidence that Bitcoin mining companies reduce this environmental hazard by using vented methane”, the expert noted.
Based on these results, Batten highlighted that Bitcoin mining has “the highest level of non-offset-based emissions mitigation of any industry.”
Bitcoin runs primarily on sustainable energy
Fossil fuels will no longer be the main source of energy for the Bitcoin network from 2022, Batten emphasized.
Although many people still believe that blockchain network activity is supported by fossil fuels, the ESG expert highlighted that the use of this energy source has decreased from 65,2% in 2021 to 45,5% today, Therefore, sustainable energy dominates the blockchain network.
Batten concluded their report indicating that, in the last year, there have been significant changes in the perception of Bitcoin mining and its impact on the environment, and that even prominent media outlets such as the Financial Times have reflected on the outreach campaign they were leading until recently on the intensive use of resources by Bitcoin.
Stuart Kirk of the Financial Times wrote an article Debunking Myths About the Environmental Impact of Bitcoin Mining and highlighting the potential of cryptocurrency as an investment asset.
Continue reading: Bitcoin mining is more sustainable than traditional industries
