Bitcoin mining has become one of the most sustainable industries in the world. Increased use of renewable sources and reduction of CO2 emissions: the studies.
New reports published by researcher Daniel Batten highlight the increase in the use of renewable energy by the industry and the consistent reduction in greenhouse gas emissions over the past five years.
The transition to renewable energy
The past five years have seen a transition of miners towards the use of renewable energy sources. In 2023, Batten demonstrated how the sector utilizes over 50% of green sources, thus positioning itself as the industry with the greenest energy mix globally. He also highlighted how the use of energy derived from fossil fuels decreased from 65.2% in January 2021 to 45.5% in January 2024.
Reduction of CO2 emissions
According to another study by Batten, the intensity of emissions produced by mining has decreased by 52% since 2019. The report compares these emissions with those produced by other sectors. From the data, it is concluded that the CO2 emission of the banking sector is 464 g/KWh, a value significantly higher than the 284 g/KWh of Bitcoin mining. Over the past four years, the banking sector has shown an emission reduction rate of 2.9% compared to the 52.7% of mining.
On a global scale, mining ranks 64th in greenhouse gas emissions production.
The transfer of Chinese miners to Ethiopia
According to a new report by Bloomberg, many Chinese miners are reportedly transferring their operations to Ethiopia, attracted by the low electricity costs.
Despite banning cryptocurrency trading, Ethiopia legalized bitcoin mining in 2022. However, the country’s uncertain political situation could pose risks: a potential political upheaval could endanger the investment.
According to Bloomberg, 19 out of 21 companies that have struck deals with the Ethiopian electricity provider are Chinese. In addition to the low cost of electricity from hydroelectric sources, among the favorable conditions for mining in Ethiopia is a temperate climate, ideal for such operations.
