More than 50% of Bitcoin mining uses renewable energy
Almost a quarter of all Bitcoin miners use water to power their setups, while wind and nuclear are the second and third biggest contributors.
The majority of power used in Bitcoin mining comes from renewable energy sources, according to research by ESG analyst and investor Daniel Batten.
Climate activists and politicians have long criticized the impact of mining on the environment but recent research shows that Bitcoin is ushering in renewable energy at an unprecedented rate.
Batten projects a 6.2% annual growth in sustainability in terms of power used for Bitcoin mining which will correlate with a decline in the usage of fossil fuel-based energy.
Almost a quarter of all Bitcoin miners use water to power their setups. Hydropower makes up 23.12% of all energy used in mining.
Additionally, the wind is used to generate power for 13.98% of Bitcoin mining, while nuclear and solar account for 7.94% and 4.98% of all power used in mining, respectively. Other renewable energy sources are used in about 2.40% of Bitcoin mining.
All in all, roughly 52.4% of all Bitcoin mining relies on renewable energy for its power needs and the trend is expected to continue growing in the coming years as traditional energy sources become more and more expensive.
Meanwhile, roughly 43% of all energy used in Bitcoin mining is still generated via gas and coal. However, Batten noted that the electric vehicle industry still uses global gridmix, which generates 60% of its energy from fossil fuels.
In comparison, 43% is “already exceptional,” according to Batten.
The methodology used to calculate the percentages was shared in the research report and does not encompass 100% of Bitcoin mining setups in the world.