Although the Bitcoin network has been expanding for years, the Bitcoin (BTC) mining industry has yet to experience a comparable increase in carbon emissions. Bloomberg analysts argue that “few industries can claim” this achievement.
This in turn could trigger the next wave of institutional investment.
On September 20, Bloomberg crypto market analyst Jamie Coutts cited data showing that Bitcoin’s sustainable energy composition has continued to rise since 2021 and is now over 50%. . As a result, emissions growth has slowed compared to the continued expansion of the network.
“Bitcoin as a global monetary network is expanding while its carbon impact is decreasing. Few industries can claim this achievement.”
He said the evolving relationship between the growth of the Bitcoin network and the global movement to transition away from fossil fuels “could trigger a wave of institutional and even government investment funding.” .
The analyst added that as energy accounts for well over 50% of the operating costs of mining,
“The incentive to acquire the cheapest energy source will help increase the network’s hashrate, while reducing the industry’s emissions and carbon intensity.”
Bottom line: If the network scales to hundreds of millions of users, the impact on global carbon emissions will be minimal, and the technology itself is likely to play a pivotal role in the transition away from fossil fuels .
— Jamie Coutts CMT (@Jamie1Coutts) September 20, 2023
Energy emissions refer to greenhouse gases and air pollutants emitted as byproducts from various energy sources and activities, while carbon intensity measures how clean electricity is.
On September 18th, Cointelegraph reported that the next generation of Bitcoin miners is focusing on alternative energy sources for efficiency.
However, as the University of Cambridge model (which is not yet established), the proportion of sustainable energy used in Bitcoin mining is a matter of debate. Has been updated Since January 2022), only 37.6% of mining comes from sustainable energy sources.
But Daniel Batten, a climate change technology venture investor and activist, argues that this is actually more than 50%.
Google is learning pic.twitter.com/xt8flWKN63
— Daniel Batten (@DSBatten) September 19, 2023
he said in one article×post It said Cambridge’s figures came about because off-grid mining and methane mitigation are not currently included in its calculations.
Related: Bitcoin mining is becoming more environmentally friendly
Earlier this year, Batten report It has been revealed that Bitcoin mining emissions have fallen to the lowest level ever.
Furthermore, he predicts that the Bitcoin network will become carbon neutral by December 2024.
“By 2030, the Bitcoin network is projected to reduce emissions from the atmosphere by a factor of 10 as it generates, which is an amazing achievement,” Batten claimed.
Magazine: Bitcoin is on a collision course with the promise of ‘net zero’
