New research shows that Bitcoin mining is slowly increasing its share of green energy. But the transition toward increased sustainability is making only slim gains.
Results of the research on Bitcoin mining and types of energy sources used to sustain this cryptocurrency were published by the Cambridge Bitcoin Electricity Consumption Index (CBECI) on Tuesday.
As with most cryptocurrency types, Bitcoin needs a lot of energy, because processing transactions and mining new tokens require significant amounts of computational power in order to complete all the necessary stages of verification and encryption.
According to the researchers, fossil fuels made up about 62% of the total energy budget in January 2022. This indicator is down from 65% a year earlier. It means the share of cleaner energy sources is growing, and the overall change is positive. The level of coal-based energy fell from 47% to 37%, but the share of gas increased to 25% from 16% in the previous year.
Reuters notes that the data contained in this study is not very precise because the distribution of energy sources has been estimated based on the geographical spread of mining across the world. It weighed against the energy production specifics of every individual country.
These results also contradict an earlier study completed by the U.S.-based Bitcoin Mining Council industry body in July. It stated that approximately 60% of the energy used to mine bitcoins comes from sustainable energy sources.
According to current estimates, Bitcoin mining will account for 48.4 million tonnes of carbon dioxide equivalent this year. This value is 14% lower compared to 2021 but still remains very significant.
