{"id":63878,"date":"2023-09-21T05:30:23","date_gmt":"2023-09-21T09:30:23","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/bitcoins-sustainable-energy-mix-over-50-carbon-footprint-compares-better-than-other-industries-bloomberg-report\/"},"modified":"2023-09-21T05:30:27","modified_gmt":"2023-09-21T09:30:27","slug":"bitcoins-sustainable-energy-mix-over-50-carbon-footprint-compares-better-than-other-industries-bloomberg-report","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=63878","title":{"rendered":"Bitcoin\u2019s Sustainable Energy Mix Over 50%, Carbon Footprint Compares Better Than Other Industries: Bloomberg Report"},"content":{"rendered":"
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Over the years, Bitcoin’s (BTC<\/u>) energy consumption data which posed serious concerns from several quarters has become more positive toward sustainability.<\/p>\n

A new report from Bloomberg<\/u><\/a> shows the sustainable energy mix of Bitcoin above 50% indicates a better climate growth ratio than several industries in the last two years.<\/p>\n

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Analyst Jamie Coutts explained that the rise in the hash rate and a comparative reduction in carbon footprint could usher in the next phase of institutional investments.\u00a0<\/p>\n

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\u201cBitcoin as a global monetary network is scaling while its carbon impact declines. Few industries can claim this achievement.\u201d<\/i><\/p>\n<\/blockquote>\n

Since the last Cambridge University\u2019s data<\/u> on Bitcoin energy consumption in 2022, analysts have argued that the reliance on fossil fuel has jumped from 37% to well over 57% in months<\/u>, significantly a huge growth as more money pours into energy efficiency.\u00a0<\/p>\n

Climate activist, Daniel Batten joined many others to predict a further change adding that Bitcoin will become carbon neutral in the coming years.<\/p>\n

\u201cBy 2030, the Bitcoin network is projected to mitigate 10x more emissions from the atmosphere than it produces, an astonishing achievement.\u201d<\/i><\/p>\n

A case for Bitcoin emissions\u00a0<\/h2>\n

Analysts at Bloomberg made a concise assessment of the situation so far concluding with a significant drop in energy usage.<\/p>\n

They argued that Bitcoin energy intensity has dropped from 600 to 295.5 grams of CO2 per KWH since the mining ban in China and Kazakhstan leading to a decentralized sector.<\/p>\n

A major point raised was the traditional and new ways of calculating energy intensity. If it is measured according to market capitalization emissions are still lower.<\/p>\n

The price of BTC is 60% below its $63,000 all-time high although network value surged by 335% with hashrate climbing 286%. Per the data, Bitcoin emissions have collapsed 75% per dollar in its market capitalization.\u00a0<\/p>\n

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\u201cSummary\u00a0<\/i><\/p>\n

While network growth may be slowing down to prev 5Y periods, it remains robust. Most KPI’s 5Y CAGRs are in double digits.<\/i><\/p>\n

And if Metcalfes law network effects hold, each new adopter and interconnection made has an exponential (not linear) impact on the network value.\u201d\u00a0<\/i><\/p>\n<\/blockquote>\n

A whole new economy<\/h2>\n

The rise in the cost of mining Bitcoin has taken a toll on miners leading to asset sales, mining reserve sales, and a complete pivot to high-end computing.<\/p>\n

As a result, miners are in search of cheaper forms of energy<\/u> leading to less reliance on fossil fuels driving up a new economy for institutional investment.<\/p>\n

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\u201cThe incentive to acquire the cheapest energy sources is contributing to the network\u2019s rising hash rate while simultaneously reducing the industry\u2019s emissions or carbon intensity.\u201d<\/i><\/p>\n<\/blockquote>\n

This has led to a spring-up in green crypto mines<\/u> powered by solar or wind creating the perfect energy transition while billions continue to flow into the ecosystem.<\/p>\n<\/p><\/div>\n