Bitcoin's Struggle to Go Green: Energy Usage Trends Revealed

Bitcoin's Energy Usage Overview

Bitcoin's transition to sustainable energy is progressing sluggishly. As of January 2022, fossil fuels still constituted 62% of its energy mix, down slightly from 65% the previous year. This indicates minimal improvement in reducing reliance on non-renewable energy sources.

Shifts in Energy Sources

The composition of Bitcoin's energy sources has seen notable shifts. Coal usage decreased from 47% to 37%, while natural gas increased to 25% from 16%. Sustainable energy sources, including nuclear, hydro, wind, and solar, saw a modest rise to 38% from 35%. However, hydro's contribution dropped from 20% to 15%.

Challenges in Data Collection

Bitcoin mining remains largely unregulated and opaque, complicating data collection. The Cambridge study utilized geographical mining distribution and country-specific energy mixes to compile its findings, which differ significantly from the Bitcoin Mining Council's estimate of 60% sustainable energy usage.

Environmental Impact and Future Outlook

Alexander Neumueller of CBECI emphasized the study's aim to clarify Bitcoin's environmental footprint, highlighting the energy mix's impact on emissions. Bitcoin's greenhouse gas emissions are projected to reach 48.4 million tonnes of CO2 equivalent in 2023, a 14% reduction from 2021, suggesting a gradual decline despite static energy mix improvements.

This summary captures the essence of Bitcoin's current energy landscape, emphasizing the need for continued efforts towards sustainability.