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This article is more than 2 month old.

Bitcoin mining consumed 56% green energy in June quarter: Report

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The global Bitcoin mining industry has doubled its sustainable electricity mix to around 56% during Q1FY22 (up from 36.8% in Q4 FY21), claims a report by Bitcoin Mining Council (BMC).

Bitcoin mining consumed 56% green energy in June quarter: Report

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).

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This makes the cryptocurrency mining business one of the most sustainable industries worldwide, as per BMC’s statement. The BMC focused on key metrics including consumption of electricity and the sustainable energy mix of bitcoin mining.

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.”

Darin Feinstein, the founder of Blockcap and Core Scientific, noted that the survey was released at a time when decentralization of mining operations is on and many miners exiting China.

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.

Economists said millions of Bitcoin mining devices used as much electrical energy as a country like the Netherlands. The complex computation requires hydro-electrical energy generated from fossil fuels and hydrocarbons leading to emissions.

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.

Alternative green energy sources include hydroelectricity, natural gas, bio gases and stranded sources of energy.

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.

The Crypto Climate Accord is working to power the cryptocurrency industry with 100 percent renewable energy. Its software will allow miners to anonymously report their usage of power.