As the Bitcoin network has steadily grown over time, the mining sector behind Bitcoin (BTC) has not witnessed a corresponding surge in its carbon footprint. According to a Bloomberg analyst, this achievement is one that “only a few industries can lay claim to.”
This development holds the potential to stimulate the next wave of institutional investment.
On September 20, Jamie Coutts, a crypto market analyst at Bloomberg, referenced data indicating that the proportion of sustainable energy sources in Bitcoin’s energy mix has consistently increased since 2021 and now exceeds 50%. As a result, emissions growth has slowed in comparison to the network’s ongoing expansion.
He noted that the changing dynamics between the expansion of the Bitcoin network and the worldwide effort to shift away from fossil fuels could “potentially trigger a surge of institutional and perhaps even governmental investment capital.”
The analyst also emphasized that since energy accounts for a significant portion of mining’s operational expenses, surpassing 50%:
Energy emissions encompass the release of greenhouse gases and air pollutants resulting from various energy sources and activities, whereas carbon intensity assesses the cleanliness of electricity.
On September 18, Cointelegraph covered the shift of the next generation of Bitcoin miners towards alternative energy sources for improved efficiency.
Nevertheless, the proportion of sustainable energy employed in Bitcoin mining has sparked debate. Cambridge University’s model, which hasn’t seen an update since January 2022, indicated that mining sourced from sustainable energy stands at only 37.6%.
However, climate technology venture investor and activist Daniel Batten contends that it is, in fact, over 50%.
In a post on anX, he mentioned that the Cambridge figures were inaccurate due to their omission of off-grid mining and methane mitigation in their calculations. Earlier this year, Batten had reported that the emissions intensity of Bitcoin mining had reached its lowest recorded level.
Furthermore, he anticipates that the Bitcoin network will achieve carbon neutrality by December 2024.
Batten asserted, “By 2030, the Bitcoin network is expected to offset 10 times more emissions from the atmosphere than it generates, a remarkable accomplishment.”