Tesla boss Elon Musk has raised concerns about the negative impact of Bitcoin mining on the environment. Crypto saw a major fall in international after China intensified its crackdown on its mining.
The cryptocurrency mining industry and watchdogs seem to have taken notice and are attempting to fix things.
The global Bitcoin mining industry has doubled its sustainable electricity mix to around 56 percent during Q1FY22 (up from 36.8 percent in Q4 FY21), claims a report by Bitcoin Mining Council (BMC).
The council revealed that its survey is a result of sustainable energy information from over 32 percent of the current international Bitcoin network and its members. The survey results showed that its participants are using electricity with a 67 percent sustainable power mix. This was extrapolated to get global estimates.
Microstrategy CEO Michal Seylor, who is part of BMC, says that BMC's survey draws on data from miners around the world. He emphasized the Bitcoin network is “decentralized” but not “disorganized.”
Feinstein pointed out that the Bitcoin network did not experience any downtime after China shut down over 60 percent of the global Bitcoin network. He added that the network remained as strong as before and did not see any bailouts or bankruptcies. The network simply redeployed its infrastructure to regions offering more freedom.
The traded digital asset, Bitcoin saw a record high of $64,804.72 in April, but after China’s actions, it nosedived to below $30,000. Its traded price was around $33,000 on July 2.
The energy consumption of the Bitcoin blockchain in China was expected to generate greenhouse gas emissions equivalent to the yearly output of the Czech Republic or Qatar, as per research by Dabo Guan (Tsinghua University, Beijing) and colleagues (April 2021).
Other experts said Bitcoin consumes around 110 Terawatt hours per year at present. This is 0.55 percent of the global electricity production but the equivalent of the energy used by small countries such as Malaysia or Sweden in one year.
After China cracked down on Bitcoin miners, many of them moved to Texas, US and other safe venues.
Founded in May 2021, BMC is a voluntary and open forum of Bitcoin mining companies and other firms in the cryptocurrency business. It aims to promote transparency, knowledge sharing and public awareness on the benefits of bitcoin and its mining.
BMC’s contributing members include Ankr, Argo Blockchain, atNorth, Bit5ive LLC, Bitfarms, Bitfury, Bitquest, BitRiver, Blockcap, BlockWare Solutions, CCU.ai, Celsius Network, Compute North, Core Scientific, Enegix, Frontier Mining, Galaxy Digital, Hive Blockchain, HMTech, Hut8, Marathon Digital Holdings, New Data Ventures LLC, Riot Blockchain, and SBI Crypto amongst others.