Bitcoin’s Eco-Friendly Evolution: Redefining Mining’s Impact on the Planet
Recent research shows that the environmental, social, and governance (ESG) features of Bitcoin mining are improving.
Despite this, mainstream media still portrays it as a threat to the planet. According to David Batten, a climate technology venture capitalist, the efficiency of Bitcoin mining is increasing.
Working with on-chain analyst Willy Woo, they created four Bitcoin ESG charts to support their findings.
So @DSBatten dropped by yesterday. We spent a day translating his work into live charts to keep easy tabs on #Bitcoin's carbon footprint, especially for people shaping policy where this data is critical.
Daniel extrapolates #Bitcoin goes carbon negative in 4 years.
— Willy Woo (@woonomic) March 7, 2023
Bitcoin mining sustainability has been steadily improving for the past two years and 52.6% of BTC mining now uses sustainable or renewable energy.
Since China banned Bitcoin mining, the rising emissions trend has reversed, and emissions per dollar of market capitalization are decreasing. Unlike the global financial system, Bitcoin’s market cap can grow while emissions decrease.
Moreover, Bitcoin mining is becoming more energy efficient, producing fewer emissions than its consumption. China’s mining ban has been advantageous for the industry, with Iceland and Norway emerging as hubs with totally renewable energy production.
Strict energy usage regulations in the U.S. and Canada also lead to more mining companies using sustainable energy.
Despite the increase in network horsepower and mining difficulty, mining profitability remains low, and miners struggle to profit, irrespective of their energy source.