Mining btc has come under serious criticism in the past, no thanks to the incredibly high amount of electricity it uses. The clamour for a more sustainable source of energy for bitcoin mining has led many mining companies to explore sustainable energy mixes and know what is chain link price prediction is. These moves have reduced the amount of energy required to mine bitcoin, as reported by Bitcoin Mining Company, BMC, a group of mining companies that are dedicated to reducing the amount of energy consumed in bitcoin mining.- BTC MINING ENERGY
HOW ENERGY EFFICIENT WAS BITCOIN BEFORE NOW?
When bitcoin became popular eight years ago, many of its early adopters were more than happy to have a centralised financial system that took powers of the federal government-owned banks. It was a move that many believed will change the world of global finance forever.
And it has changed a lot in the financial world, ranging from Decentralised Finance, alongside its many developmental branches, to Non-fungible Token, to new blockchains such as chainlink. However, the excitement of a new financial world was short-lived when environmentalists started to dig into the environmental consequences of mining bitcoin.
POS VS POW
Proof-Of-Work was stated as one of the main reasons for high energy consumption. This led other blockchain developers to find solutions that reduced how much energy is used to mine cryptocurrencies. Proof-of-Stake was developed, and since then, the energy consumption levels on major blockchains have been fair.
But, because of how bitcoin is built, there was no way to move bitcoin to a proof-of-stake network and to a new btc block explorer.
So, instead of trying something that looked technically impossible, many people clamoured for renewable energy, claiming it was a better energy option for bitcoin mining. The rave for renewable energy in Bitcoin mining was further heightened, if one is allowed to speculate, when Elon Musk, after announcing that Tesla was accepting bitcoin as payment for his cars, reversed the decision.
THE MEETING BETWEEN ELON MUSK AND BITCOIN MINING COMPANY
The decision led to a meeting between Musk and the Bitcoin Mining Company. That was in 2021. The BMC promised to use more sustainable energy in mining bitcoin. It was a commitment that, until recently, didn’t seem like they were totally committed to.
Now, before going further, it is imperative to note: the amount of energy used for btc mining has reduced significantly, and the mining efficiency increased by 3,814% since 2014.
But this wasn’t always the case.
THE EFFECT OF CHINA’S CRYPTO BAN ON CARBON EMISSIONS WORLDWIDE
The quest to reduce the amount of energy used in bitcoin mining was well on its way, with miners all over the world using sustainable means of energy to mine. But after China officially banned crypto in 2022, a move that caused many miners to relocate to other parts of the world with more crypto-friendly laws, the carbon footprint caused by mining btc increased by 17%. This was a bad move for the BTC mining industry as BMC had committed to reducing the carbon footprints from btc mining.
The ban from China increased the amount of carbon monoxide released during btc mining because Chinese miners, it was reported, used more sustainable energy in their mining than other miners. As miners from China migrated to other countries, they used fossil fuels in generating energy from their mining rings.
MANY PEOPLE DOUBT THE REPORT’S AUTHENTICITY
The report from Bitcoin Mining Company, BMC, of the reduced level carbon footprint from bitcoin mining has caused some conversations in the cryptocurrency space. The representative of BMC, the CEO of Micro Strategy Michael Saylor said that the group is working hard to implement sustainable energy sources in its mining rings. The report said bitcoin miners now use 64.4% of the renewable energy mix in their mining, a sharp increase from the first quarter of 2021.
However, the report from BMC has raised a lot of eyebrows. The grouse people have with the report is the level of believability in the report. For a group that needs the world to believe that bitcoin mining was safe for the environment, especially given the climate changes in the world, one wonders if the statistics given were true.
THE SCIENTIFIC JOURNAL’S REPORT- BTC MINING ENERGY
Also, a scientific report in February, following China’s ban makes the BMC’s report look fishy. The report in a scientific journal said bitcoin mining had increased its carbon footprints by 17%. If in February bitcoin miners released 17% more Carbon monoxide into the atmosphere than they did before the ban, what happened in the last few months? Are we sure these ‘sustainable power mixes’ being touted are real?
The BMC report says that miners use sustainable energy sources and by-products wasted from other operations.
The report in the scientific journal Joules showed that bitcoin miners were using 247 terawatt-hours (Twh), less than what gold miners used, and accounted for 0.16% of total energy usage.
Although the Journal’s report in February and the BMC’s report in April look conflicting, there are reasons to be hopeful.
DESPITE THE REPORTS PROBABLE LACK OF OBJECTIVITY, THERE ARE REASONS TO BE HOPEFUL
While the report from the BMC has raised a lot of doubts in the minds of environmentalists and environmental groups, there are reasons to be hopeful. Whether the report is true or not, it shows concerted effort by bitcoin miners to reduce the amount of carbon monoxide their mining activities caused to be released into the atmosphere. It gives one reason to be hopeful that, in the coming years, bitcoin mining will be safe for the environment and not detrimental.
Also, there are signs that more blockchain developers are taking the environmental impact of their development into consideration. While in the past the basis for developing blockchains was the solutions it provides for customers, now, however, the environmental impact is also considered. This is a win for the environment and for all of us. If the world’s climate improves, with carbon footprints reduced drastically in the coming years, and sustainable energy developed without causing further damage to the environment, we all are the better for it.
Environmentally-conscious mining, while it shouldn’t call for celebration, is now, given how fast atmospheric temperature is increasing. Celebrating these small wins will further strengthen the course for more sustainable energy in bitcoin mining rings and in all mining rings in the world.