The use of coal as the primary energy source in Bitcoin mining has declined over the past two years, while the use of other renewable energy sources, such as solar and wind power, and clean energy sources, such as nuclear power, have seen slight growth.
In recent years, Bitcoin miners have been looking for alternatives to make crypto mining one of the most sustainable activities in the world. According to the results published by the Bitcoin Mining Council in July of this year, close to 60% of BTC mining farms already use or combine renewable energy sources to make their network operations more sustainable and sustainable.
However, data published by the Centre for Alternative Finance at the University of Cambridge (CCAF) indicates that, as of January of this year, only About 37,6% of Bitcoin network operations were being supported by clean or renewable energy sources, such as nuclear, wind and solar.
CCAF has published a model that provides estimates of Bitcoin’s underlying energy consumption, categorizing energy sources and emissions intensity. According to this model, 62,4% of Bitcoin’s network operations were still powered by fossil fuels, such as coal, natural gas, and oil, at the beginning of the year.
The Ddata correspond from September 1, 2019 to January 2022.
Source: CCAF
However, comparing this data to that of two years ago, in 2020, it is clear that the use of renewable energy sources such as solar and wind power, within Bitcoin mining, has been increasing. The use of clean energy sources, such as nuclear energy, has also grown.
Energy sources in Bitcoin mining
CCAF estimates related to the energy sources consumed by Bitcoin mining show that, since 2020, The use of coal in mining this cryptocurrency has been reduced slightly, by 3,82%Likewise, bitcoin mining with other fossil fuels, such as oil, has also been reduced, by 0,32%, in the last two years.
The opposite has occurred with natural gas, the use of which has been growing since 2020. According to CCAF data, the use of natural gas in Bitcoin mining activities has increased by about 12,2%.
However, the use of nuclear, wind, solar and other renewable energy sources has also been growing within this area of crypto industry activity.
Based on estimates made by the CCAF, Nuclear power in Bitcoin mining has grown by 7,28%; the use of Wind and solar energy, 1,33% and 1,34%, respectively. As for hydroelectric power, another major renewable energy source in the world, CCAF data shows that its use within crypto mining has decreased by 18,5%.
Decrease in the use of hydroelectric energy
China appears to be one of the main culprits behind the decline in the use of hydroelectric power in Bitcoin mining. Last year, the country dominated over 60% of the global Bitcoin hash rate and A significant portion of the crypto mining operations carried out within its territory were supported by hydroelectric power sources.
However, following the ban imposed on Bitcoin and cryptocurrencies, many miners were forced to leave China to relocate to other jurisdictions where they could continue their activity.
The increase in gas usage, from 12,8% in 2020 to 23,0% in 2021, and nuclear power, from 4,0% in 2020 to 8,9% in 2021, reflects the shift of Bitcoin miners to the United States, noted CBECI leader Alexander Neumueller.
The debate over Bitcoin's environmental footprint
The CCAF, focused on providing reliable data on the sustainability and environmental impact of Bitcoin mining through the Cambridge Bitcoin Electricity Consumption Index (CBECI), points out that the popularity that Bitcoin has gained worldwide has also highlighted the debate about its energy consumption.
From environmentalists to financial institutions and regulators, concerns have been raised about the blockchain network's energy consumption and its environmental impact. The institute has therefore launched new updates to determine the main energy sources used by the network's miners and estimate their environmental footprint.
Based on its tools, the CCAF points out that Bitcoin greenhouse gas (GHG) emissions are estimated at 48,35 MtCO2e as of this month, showing a reduction of 14,1% compared to the estimated GHG emissions in 2021, which were 56,29 MtCO2e.
Bitcoin's current GHG emissions They represent only 0,10% of global gas emissions into the environment and is less than half of the emissions generated by gold mining in the world.
CCAF notes that the decrease in Bitcoin's estimated GHG emissions is due to a decrease in the network's electricity consumption, despite a significant increase in the hash rate being identified in recent years.
Today, many of the Bitcoin mining rigs used by businesses are more cost-effective, allowing for high computing power while being more energy efficient.
Continue reading: Bitcoin mining could save the environment
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