According to Cointelegraph, a recent study by the United Nations (UN) found a direct correlation between the price of Bitcoin (BTC) and the energy required for mining operations. The study analyzed the activities of 76 Bitcoin mining nations during 2020â2021 and discovered that the global Bitcoin mining network consumed 173.42 Terawatt hours of electricity. During this period, Bitcoin experienced a bull run, reaching an all-time high of $69,000. The UN report stated that a 400% increase in Bitcoin's price from 2021 to 2022 led to a 140% increase in the energy consumption of the worldwide Bitcoin mining network. At the time, fossil energy sources made up 67% of the electricity generated for Bitcoin mining.
Crypto entrepreneurs have been taking proactive steps to increase their reliance on green energy. Hydropower accounted for over 16% of the total electricity demand of the global Bitcoin mining network, while nuclear, solar, and wind energy sources provided 9%, 2%, and 5% respectively. The top ten Bitcoin mining nations at the time, including China, USA, Kazakhstan, Russia, Malaysia, Canada, Germany, Iran, Ireland, and Singapore, were collectively responsible for 92â94% of the global carbon, water, and land footprint of Bitcoin. The global push for greener alternatives to meet grid demand will also help reduce the carbon footprint of Bitcoin and the crypto ecosystem.
Genesis Digital Assets Limited (GDA), a mining and data center company with over 400 megawatts (MW) of power generation worldwide, recently opened a new data center in Sweden powered by the country's growing renewable energy surplus. Christian Anders, founder of BT.CX, said that Bitcoin mining is not very common due to high energy prices, but added that Sweden, Finland, and Norway have a surplus of energy and negative energy prices from time to time, primarily from renewable hydropower in remote locations that are difficult to distribute. Meanwhile, Bitcoin mining equipment manufacturers continue to produce energy-efficient hardware. At the World Digital Mining Summit (WDMS) on September 22, Bitcoin miners shared their plans to help decarbonize the crypto ecosystem. Bitmain introduced its efficiency-focused Antminer S21, and Nazar Khan, Terrawulf's chief operating officer, emphasized the role of Bitcoin rig manufacturers in locating their mining loads in places where decarbonization is happening and facilitating the decarbonization process.
