Tuesday, July 27, 2021

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    56% of bitcoin mining uses sustainable energy

    Key facts:
    • The survey voluntarily involved 32% of bitcoin’s hash rate worldwide.

    • According to the survey, bitcoin mining is one of the most sustainable industries.

    56% of bitcoin (BTC) miners use sustainable energy. This is evidenced by a survey conducted by the Bitcoin Mining Council. 32% of the hash rate of Bitcoin globally.

    The result of the investigation was published on July 1, 2021. The study highlights that “Bitcoin mining uses a negligible amount of energy, is rapidly becoming more efficient, and is fueled by a higher mix of sustainable energy than any major country or industry.”

    In addition, the report notes that survey participants (including companies such as BitFury, Bitfarms, BitRiver, Hive, Marathon, Hut8, Riot, SBI Crypto, among others) are currently using a 67% of electricity derived from a sustainable energy mix.

    “Based on these data, it is estimated that the mining industry’s sustainable electricity mix has grown by approximately 56%, during the second quarter of 2021, making it one of the most sustainable industries globally,” the document reiterated. This percentage places it above the European Union, the area with the highest use of renewable energies in the world (with 49.5% of the energy mix).

    From the first to the second quarter of 2021 alone, sustainable energy use for bitcoin increased by 52.2%, reaching a total of 56% sustainable energy. Source: Bitcoin Mining Council.

    This percentage increase is striking, especially if you remember that in mid-June, businessman Elon Musk said that his electric car company, Tesla, would again accept bitcoin as a means of payment when 50% of the energy for mining was renewable.

    The energy produced in the world is wasted

    The research also compared the use of energy to maintain the security of the Bitcoin network with global energy consumption. With 189 TW/h, in relation to the 162,194 TW/h of world consumption, Bitcoin mining barely represents 0.117% of the total energy consumed in the world.

    Apart from these 162,194TW/h consumed annually, of the global production, 50,000 TW/h are wasted and left without consumption. Of this huge amount of lost energy, Bitcoin consumes 0.4%. It is estimated that, because miners’ incentives lead them to seek the cheapest energy to reduce costs, Bitcoin mining will increasingly take advantage of the global energy surplus and feed on more renewable energy sources.

    Michael Saylor: Demystifying the Bitcoin Mining Industry

    This data is the first launch of the quarterly survey by the Mining Council, which was founded in May 2021 with the support of some of the largest Bitcoin mining companies in the Bitcoin industry, along with MicroStrategy and its director, Michael Saylor.

    In this regard, the executive of MicroStrategy Considered the Mining Council as an important step to bring more transparency and understanding to the Bitcoin mining industry. He noted that the presentation of Bitcoin mining data by industry participants will help play an important role in demystifying the Bitcoin mining industry.

    I am pleased to see that the Bitcoin mining industry has come together, voluntarily, to provide critical information to the general public and policymakers, especially as it relates to clarifying common mistakes about the nature and scale of Bitcoin’s energy use.

    Michael Saylor, CEO of MicroStrategy.

    The entrepreneur added: “This survey, the first quarterly publication of many that we expect to come, is based on data from miners around the world. As I said before, solo because the Bitcoin network is decentralized doesn’t mean it has to be disorganized.”

    Miners’ exodus out of China is healthy for Bitcoin

    For his part, Darin Feinstein, founder of Blockcap and Core Scientific, noted that the survey comes at a crucial time, as the Bitcoin industry becomes geographically decentralized as a result of miners leaving China. Being China unot from the main places where bitcoin was mined with coal, the percentage of renewable energy use in bitcoin is likely to increase in the coming months.

    Feinstein noted, “Even though China shut down more than 60 percent of the global Bitcoin network, the network experienced zero downtime, no bailouts, has not recorded bankruptcies, and has simply adapted by redistributing its infrastructure in regions that have greater freedoms.”

    The supposed environmental impact of bitcoin mining was analyzed in the framework of the second day of the Bitcoin Conference 2021 that took place in Miami, on June 6, as reported by CriptoNoticias.

    At this event it was concluded that mining promotes the development of renewable energies, according to businessmen participating in this event. “We must communicate that we miners are helping the development of renewable energies. Any means is good to report this,” Jason Les, CEO of Riot Blockchain, said at the time.

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