- Bloomberg analyst Jamie Coutts highlighted the growth of renewable energy in Bitcoin mining.
- The Cambridge Centre adjusted its 2022 forecast for Bitcoin’s electricity consumption.
- Despite a quadrupling hash rate, Bitcoin’s carbon footprint increased by 6.9%.
Bloomberg’s cryptocurrency market analyst, Jamie Coutts, recently underscored the swift growth of renewable energy in Bitcoin
Earlier today, Coutts used X (previously known as Twitter) to discuss the seeming shift in Bitcoin’s energy narrative due to the emergence of sustainable energy options. The Bloomberg analyst tackled the allegations about the energy-consuming procedure associated with BTC mining, a recurring critique of Bitcoin regarding its environmental footprint.
The analyst praised Coin Metrics, Jaran Mellerud, and Daniel Batten for their significant contributions to enhancing data visibility and modeling, resulting in reduced model variability. The Cambridge Centre for Alternative Finance (CCAF) adjusted its 2022 forecast for electricity consumption from 105.3 terawatt-hours (TWh) to 95.5 TWh following a precise evaluation of the application-specific integrated circuit (ASIC) machines utilized in BTC mining.
Daniel Batten, a venture capitalist specializing in climate technology, has reportedly made additional improvements to rectify the shortcomings in the CCAF’s model. The model from CCAF previously overlooked new renewable energy sources such as flared gas and off-grid power. It also needed to account for the geographical transition towards grids less reliant on fossil fuels over the past three years.
“The analyst noted that following China’s prohibition on mining in mid-2021 when emissions reached a high of 60.9 megatonnes of carbon dioxide equivalent (CO2e), there has been a 37.5% reduction in emissions. This indicates that the worries regarding Bitcoin’s carbon footprint may be exaggerated.”
Bloomberg’s data on Bitcoin’s hash rate and emissions indicate that despite a quadrupling hash rate, the carbon footprint linked to BTC mining only increased by 6.9% in the last four years. Coutts reiterated to his audience that Bitcoin miners are not producers of electricity, but rather, they are consumers of buying electricity.
