Bitcoin's Rising Value Impacts Global Energy Consumption: UN Reports Push for Greener Crypto Mining
Summary:
The United Nations (UN) has conducted a study correlating Bitcoin's price with energy consumption during mining operations. The study revealed that a 400% increase in Bitcoin's price from 2021 to 2022 resulted in a 140% increase in global energy consumption by the Bitcoin mining network, largely dependent on fossil fuels. The top ten Bitcoin mining nations together contributed 92–94% of Bitcoin's global environmental footprint. Progressive steps are being taken by crypto entrepreneurs and mining equipment producers towards adopting more green energy alternatives and efficient technology to reduce the carbon footprint of crypto mining. Genesis Digital Assets Limited, a mining and data center company, has opened a new data center running Bitcoin mining machines powered by Sweden's surplus renewable energy.
The United Nations (UN) has recently completed a study, revealing a heightened correlation between Bitcoin's worth and the energy expended to mine it. The UN's research encapsulated 76 nations actively mining Bitcoin and found that, during the 2020–2021 period, the global Bitcoin mining network devoured 173.42 Terawatt hours of electricity. This spike in energy consumption coincided with a bull run in the crypto market, Bitcoin reaching its record peak of $69,000.
According to the UN's statistics, a ballooning of Bitcoin's value from 2021 to 2022 by 400% was met with a surge in energy consumption by the worldwide Bitcoin mining network by 140%. During this window, electricity for Bitcoin mining was largely drawn from fossil fuels at 67%. Conversely, crypto innovators have been seeking ways to increase their utilization of renewable energy sources. Renewable sources such as hydropower, nuclear, solar and wind, fulfilled more than 16%, 9%, 2% and 5% respectively of the energy needs of the global Bitcoin mining ecosystem.
The UN's report divulged that the principal Bitcoin mining countries of the period – China, USA, Kazakhstan, Russia, Malaysia, Canada, Germany, Iran, Ireland, Singapore – were collectively contributing to 92–94% of the worldwide environmental footprint of Bitcoin in terms of carbon emissions, water consumption, and land use.
The drive to adopt green alternatives as energy sources will help diminish Bitcoin and the wider crypto ecosystem's carbon footprints. Genesis Digital Assets Limited (GDA), a company operating Bitcoin mining facilities and data centers with an overall power generation capacity exceeding 400 MW, recently launched a new data center in Sweden, housing 1,900 Bitcoin mining rigs and taking advantage of the Sweden's abundant renewable energy resources.
Founder of BT.CX, Christian Anders, pointed out that Bitcoin mining is typically considered excessive due to high energy costs. Nonetheless, he stated that some countries such as "Sweden, Finland and Norway have an excess of energy and often have negative energy prices. They primarily use renewable energy sources like hydropower at remote locations challenging to distribute."
Bitcoin mining gear producers also continue to engineer more energy-efficient devices. Several Bitcoin miners communicated their plans to help decarbonize the crypto ecosystem at the World Digital Mining Summit (WDMS) on September 22. Bitmain, a notable Bitcoin mining company, unveiled its Antminer S21, focusing on efficiency, while Nazar Khan, Terrawulf’s chief operating officer, emphasized their role in aiding the decarbonization process by strategically placing our Bitcoin mining activities in eco-friendly locations.
Published At
10/30/2023 10:41:27 AM
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