Over 59.5% of bitcoin mining is done through sustainable means, according to the most recent survey by the Bitcoin Mining Council (BMC), which covers the largest groups dedicated to the mining of this cryptocurrency in the world.
The news represents a substantial advance in the sustainability of the cryptocurrency’s energy matrix since for years the high energy consumption of token mining in systems that use a Proof of Work protocol has been criticized.
An interesting fact is that the bitcoin Hash Rate — which measures the speed with which algorithms are solved to generate new cryptocurrencies — has grown by 137% in the last year, while energy consumption increased by only 63%.
According to BMC member Michael Saylor, bitcoin mining efficiency has grown by 46% in the last year, and he claims that predictions about bitcoin’s energy consumption by its detractors have not been accurate so far.
According to the BMC study, bitcoin mining is responsible for only 0.09 % of carbon emissions, around 34.8 billion tons of Co2. It also estimates that globally, bitcoin mining accounts for about 0.15 % of energy demand.
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“People have been predicting that Bitcoin was going to use up all the energy in the world for quite a while. That’s not happening, and it’s not going to happen because of the efficiency dynamics,” Saylor said.
According to Fred Thiel, manager of mining group Marathon Digital holdings, “efficiency gains are 100% focused on energy consumption because energy is our key input cost. As energy prices go up, it forces us to become more efficient.”
Rising energy costs have strained some miners, who have been forced to exit the market or sell part of their bitcoin positions to fund their operating costs. These adverse conditions have forced miners to look for ways to maximize the efficiency of their operations that are increasingly coming under public scrutiny.
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica