Bitcoin's Surging Growth Maintains Reduced Carbon Footprint, Promises Network's Carbon Neutrality by 2024
Summary:
Despite the growth of the Bitcoin network, its carbon footprint has not increased equally. In fact, Bitcoin's use of renewable energy has surpassed 50% since 2021, slowing emission growth. This pattern could draw greater institutional investment, as energy represents large part of mining operational costs. Meanwhile, Daniel Batten, a climate tech venture investor, predicts that the Bitcoin network will become carbon neutral by December 2024, contributing significantly to the transition away from fossil fuels.
As the Bitcoin network expands, its carbon footprint has not grown at an equivalent pace, according to an analyst at Bloomberg, a feat few industries can boast. This trend could potentially attract more institutional investment. Jamie Coutts, a crypto market analyst for Bloomberg, pointed out on September 20 that Bitcoin has been progressively utilizing more renewable energy since 2021, now surpassing 50%. This increased use of renewable energy has slowed down emission growth despite the network's growth. In a statement, Coutts indicated, "Bitcoin's reduction in environmental impact despite its growth is a claim few sectors can make."
He observed that Bitcoin's growth and the global shift to renewable energy could trigger an influx of capital from institutional and even sovereign investors. With energy representing a significant portion of mining operational costs, the drive for cheaper energy sources has led to an increase in the network's hash rate while simultaneously decreasing carbon emissions. "If Bitcoin succeeds in bringing in hundreds of millions of users, its impact on global carbon emissions would be minimal and the technology could be integral to the transition away from fossil fuels," professed Coutts.
Energy emissions denote greenhouse gases and pollutants produced from various energy sources and activities, while carbon intensity refers to the cleanliness level of electricity. Cointelegraph reported on September 18 that next-generation Bitcoin miners are focusing on renewable energy sources for higher efficiency.
The exact proportion of renewable energy used in Bitcoin mining has sparked debate. A model from Cambridge University, last updated in January 2022, estimated that 37.6% of Bitcoin Mining comes from sustainable sources. However, climate tech venture investor and activist Daniel Batten differs, insisting that the percentage is over 50%.
Batten asserts that the Cambridge model overlooks off-grid mining and methane mitigation. He has previously reported that carbon emissions intensity from Bitcoin mining has decreased to its lowest-ever level. He anticipates the Bitcoin network becoming carbon neutral by December 2024. Batten proclaiming, "By 2030, the Bitcoin network is expected to offset ten times more carbon emissions than it produces, a truly remarkable feat." emphasizes Bitcoin's potential conflict with 'Net Zero' vows.
Published At
9/21/2023 4:38:23 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.