Bloomberg crypto market analyst Jamie Coutts stated that carbon emissions have declined despite an increase in Bitcoin energy usage.
Over the last few years, the Bitcoin hash rate – the computational power dedicated to Bitcoin mining – has quadrupled. Surprisingly, this substantial increase has only resulted in a slight 6.9% rise in carbon emissions.
Coutts suggests that Bitcoin miners are not emissions sources but purchased electricity consumers. This is substantiated by data showing a decrease in emissions since 2021. At their peak, emissions reached 60.9 megatonnes of carbon dioxide equivalent. However, following China’s 2021 Bitcoin mining ban, there’s been a dramatic 37.5% reduction in carbon emissions.
This data analysis prompts a reevaluation of the environmental impacts traditionally associated with Bitcoin mining and encourages a nuanced understanding of the emerging crypto market’s infrastructure.