Bitcoin mining is undergoing an energy transformation. Renewable and nuclear energy use exceeds 52%, with natural gas displacing coal, according to recent data published by the Cambridge Centre for Alternative Finance.
Bitcoin, historically known for its high energy consumption and dependence on polluting sources, is undergoing a profound transformation. A recent report by the Cambridge Centre for Alternative Finance (CCAF) reveals that, by 2024, More than 52% of the energy used in Bitcoin mining comes from renewable and nuclear sources..
The report highlights a significant shift, showing that the blockchain network has not only reduced its potential environmental impact but is also in the midst of an evolution toward more sustainable practices within the industry.
In parallel, the Cambridge Centre for Alternative Finance stressed that Natural gas has surpassed coal as the primary energy source used to mine bitcoins., marking another important step towards reducing polluting emissions.
YOUR SECURE DOOR TO CRYPTO HEREThe exponential growth of clean energy in Bitcoin mining
The increase in the use of renewable and nuclear energy in Bitcoin mining is a clear indication of a paradigm shift. In 2022, these sources represented 37,6% of the energy mix, while in 2024 they will exceed 52%. This growth is largely due to the greater availability and competitiveness of renewable energy, as well as growing pressure from investors and regulators to adopt more sustainable practices.
Within renewable energies, Hydroelectricity leads with approximately 23,4% Of the total, followed by wind power at 15,4% and solar power at 3,2%. Nuclear energy, meanwhile, accounts for nearly 9,8%, establishing itself as a reliable and consistent source for meeting the energy demand of crypto mining.
“The surveyed miners reported that they primarily use sustainable energy sources (52,4%), which is a marked increase compared to previous estimates (37,6% in 2022), which include renewable energy (42,6%) and nuclear energy (9,8%),” notes The report.
The combination of these energy sources in Bitcoin allows for greater diversification and stability in supply, reducing dependence on volatile and polluting fossil fuels. Additionally, some mining companies are innovating by installing solar and wind farms dedicated exclusively to their operations, thus optimizing the use of clean energy and reducing costs in the long term.
BUY BITCOIN EASILY AND SECURELY AT BIT2METhe adoption of renewable energy is also driven by the ability of crypto mining companies to act as flexible loads on the power grid. By adjusting their consumption to the availability of intermittent energy sources such as solar and wind, they contribute to grid stability and maximize the use of these clean sources.
Natural gas displaces coal: A significant shift for the leading cryptocurrency
Another crucial aspect in the energy transformation of Bitcoin mining is the displacement of coal by natural gas as the main source of fossil energyAccording to the report, in 2024, natural gas accounted for 38,2% of the total, compared to 25% in 2022, while coal use fell sharply from 36,6% to 8,9% over the same period. This transition is significant because Natural gas is a cleaner and more efficient source of energy than coal., emitting fewer greenhouse gases and other pollutants.
“Furthermore, natural gas (38,2% in 2024 versus 25,0% in 2022) replaced coal (8,9% in 2024 versus 36,6% in 2022) as the main source of energy,” said the research center.
Natural gas also offers operational advantages for cryptocurrency mining. Its combustion generates less waste, and its transportation and storage infrastructure is more modern and efficient in many countries.
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Currently, some Bitcoin mining companies are even harnessing the methane gas released from oil wells, transforming a potent greenhouse gas into energy useful for cryptocurrency mining, thereby mitigating polluting emissions. However, it's important to note that natural gas is still a fossil fuel and, therefore, not a definitive solution for the sustainability of the blockchain network. In the long term, a complete transition to renewable and nuclear sources will be necessary to achieve a carbon-neutral footprint.
THE SAFEST WAY TO TRADE CRYPTO – BIT2ME LIFEBitcoin's Environmental Impact and Energy Efficiency: Updated Cambridge Data
Bitcoin mining continues to consolidate itself as a global industry that, while consuming a considerable amount of energy, is rapidly advancing in the adoption of sustainable practices and high-efficiency technologies.
According to the report, annual grid consumption is estimated at approximately 138 terawatt hours (TWh), representing approximately 0,54% of global electricity demand. Despite this volume, the sector has managed to reduce its environmental impact thanks to the implementation of more efficient hardware and intelligent energy management systems.
Currently, crypto mining companies are investing in renewable energy and optimizing the efficiency of their equipment, while also adopting advanced cooling technologies, such as oil immersion, that allow for the recovery of waste heat and reduce energy losses. These innovations, combined with the use of smart systems to harness surplus renewable energy during off-peak hours, are helping to balance consumption and reduce dependence on fossil fuels in Bitcoin mining.
Furthermore, more than 70% of companies in the sector have implemented measures to mitigate their carbon footprint, demonstrating an active commitment to sustainability and the operational efficiency of the technology. Bitcoin mining, therefore, is emerging as a constantly evolving sector, capable of combining technological growth with environmental responsibility.
The US leads the way in mining activity, and Bitcoin emerges as a key ally for the power grid.
North America is consolidating its position as the global epicenter of digital mining activity, with the United States accounting for more than 75% of the activity and Canada accounting for nearly 7%. Although the US share may be overestimated due to the strong commitment of its companies, the trend is clear: the North American nation leads the Bitcoin mining boom in the region, while South America, the Middle East and Northern Europe show signs of growth, marking a diversification in the global mining landscape.
On the other hand, a key finding in the Cambridge Centre for Alternative Finance report is the ability of mining companies to act as flexible electrical loads.
TRADE WITHOUT HASSLE – BUY BITCOINDuring 2024, crypto miners managed to reduce up to 888 GWh of demand, demonstrating their ability to modulate their consumption in real time and offer essential ancillary services to grid operators. This flexibility allows them to take advantage of surplus renewable energy and stabilize the electricity system, especially in regions with high penetration of variable sources such as solar and wind. Therefore, Bitcoin mining is emerging as a strategic resource for the energy transition, capable of absorbing clean energy when it is abundant and disconnecting in times of scarcity.
In addition, the center highlighted that the mining industry is making progress in sustainability: 86,9% of dismantled hardware units are resold, reused, or recycledWith this, the industry is once again demonstrating its ability to adapt and adopt more responsible practices.
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