A Cambridge report has found that the United States dominates Bitcoin mining on clean energy, with more than half of all mining operations run on sustainable energy sources.
According to a Q1 report by the Cambridge Centre for Alternative Finance (CCAF), at least 52.4% of Bitcoin mining will be powered by renewable or low-carbon energy, a major leap from the 37.6% reported in 2022.
Different Forms of Sustainable Energy
The latest finding on Bitcoin mining use of clean energy signals a critical moment in the current global efforts to make the digital asset industry more environmentally responsible and challenge the long-held notion that cryptocurrencies are responsible for environmental degradation.
The Cambridge report found that Bitcoin miners were using more sustainable energy sources, with at least 42.6% relying on renewable energy sources and 9.8% on nuclear energy. At the same time, natural gas joined the growing list of clean energy sources at 38.2%, overtaking coal, which dropped from 36.6% to 8.9%.
Bitcoin Has Been On the Firing Line
At the same time, the Bitcoin network’s annual electricity use increased by 17% to 138 TWh, which is at least 0.54% of global electricity usage. This increase was recorded despite a 24% improvement in Bitcoin mining’s use of clean energy, achieved through the adoption of more efficient equipment, which reached an estimated 28.2 joules per terahash (J/TH) by mid-2024.
Electricity bills remain the most significant expense for cryptocurrency miners, accounting for at least 80% of cash-based costs, with median rates reported at $45 per MWh.
For a long time, Bitcoin has been on the firing line due to the amount of electricity it consumes, especially because of its proof-of-work consensus mechanism, which is the driving force behind its decentralized network.
For a long time, headlines have claimed that Bitcoin is “boiling oceans,” with tens of environmental groups protesting the massive consumption of electricity and its environmental impact. However, with the new Cambridge report, it seems like the tides are finally beginning to turn.
Bitcoin Mining on Clean Energy Takes Root
The latest Cambridge report highlights a transformation within the broader mining community. As energy prices fluctuate and environmental groups exert increasing pressure, the idea of Bitcoin mining on clean energy seems to have taken root as mines were forced to reconsider their modus operandi.
The use of hydropower, wind, solar, and even geothermal energy is now becoming the main source of power for miners as they look to cut costs and align with growing global expectations for cleaner technologies.
Conclusion
The Bitcoin mining on clean energy move has had many significant implications for the crypto industry and especially for Bitcoin’s public image at a time when its popularity is growing. With the use of sustainable energy in the US surpassing the 50% mark, proponents can now push back against critics who believed BTC was incompatible with climate goals.
Frequently Asked Questions
How long will it take to mine 1 Bitcoin?
Depending on your choice of hardware and whether you are working alone or in a pool of miners, mining a single Bitcoin can take 10 minutes to 30 days, depending on your hardware and software setup.
What is the major issue with Bitcoin mining?
Crypto mining has been described as typically harmful to the environment because it requires significant energy and equipment. However, this perspective could change as miners turn to renewable energy sources.
Which country mines the most Bitcoins?
According to available data, the US stands at the top of the global Bitcoin mining chart, producing approximately 37.8% of the world’s Bitcoin hash rate as of 2024.
Appendix: Glossary of Key Terms
Bitcoin mining is an energy-intensive process involving mining devices and software competing to solve a cryptographic problem.
Clean energy: Energy sources that produce little to no greenhouse gas emissions or other pollutants, primarily relying on renewable resources like solar, wind, and hydropower.
Source
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