Bitcoin mining ESG fears never cease to exist. To make matters worse, the mining industry suffered a major downturn in 2022 amid the ongoing crypto winter. Subsequently, many large crypto miners chose to sell their BTC holdings.
However, both of these factors could see a change in scenario due to the ideas discussed below…
New Report: How Bitcoin Mining Could Transform the Energy Industry
Bitcoin miners are uniquely resilient energy consumers who can help solve some of our biggest energy problems.
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ArcaneResearch September 1, 2022
Crypto Research and Analytics Arcane Research, on Sep 2, 2019 chest A report estimating Bitcoin’s energy use and its potential to transform the energy industry. The report emphasized that the mining industry could transform energy production around the world for the better. Contrary to his recurring narrative as social and environmental harm. The report added,
“Most people dismiss bitcoin mining as just another energy-intensive industry, but there is one big difference: Bitcoin miners are uniquely flexible about when and where they use their energy.”
BTC can have a net positive impact on energy and the environment. But, is this really true?
Looking at the facts, the energy consumption of BTC mining operations has increased over the years due to the massive demand. But the industry still accounts for a very small portion of the global total. Something many critics miss.
According to the chart below, bitcoin miners consume electricity at a rate of about 100 TWh per year, which is about 0.06% of the total global energy demand.
Compared to other sources, the stated value represents an insignificant amount.
For example, look at video games and the gold mining industry. The former consumed about 105 TWh per year, while the latter recorded around 240 TWh – ~2.5 times the consumption of BTC mining. Finally, the consumption of the paper production process speaks for itself.
Additionally, BTC mining systems reduce carbon emissions as the world increasingly moves away from flexible fossil fuels to inflexible renewables. the report Open
“For every investment of $1,000, the bitcoin mining system reduces emissions by 6.32 tons of CO2 equivalent per year, compared to 1.3 tons for wind and 0.98 tons for solar.”
The chart below sheds more light to support this narrative,
Did miners (in displacement or not) feel this sustainable change in mining operations? yes. This is evidenced by the fact that Bitcoin mining difficulty experienced its highest jump since January recently.
According to the previous report, BTC took the initiative to adjust the mining difficulty at block height of 751,968. Mining difficulty also increased significantly by 9.26% to 30.98 tons.
The question remains…
The above insights no doubt reflect the conviction among miners, despite the bearish sentiment. However, the miners’ gain still highlights a worrying scenario, with the same situation continuing for a while now.
Source: Glassnode At the time of writing, total miner revenue has been declining.