Amidst the rapid evolution of the high-tech and ever-evolving landscape of Bitcoin mining, one of the industry’s leading Bitcoin energy researchers has made an interesting discovery.
According to Daniel Batten, author of Cambridge Bitcoin Power Consumption Index (CBECI), the three exclusions mentioned on its website underestimate Bitcoin’s sustainable energy share by 13.6%.
According to the authors of the original study, when all is tallied properly, Bitcoin’s energy sustainability is over 50%, with 52.6% of Bitcoin mining done sustainably.
A study conducted by CBECI was introduced to develop a data-driven analysis of Bitcoin’s electricity usage, which in the past has raised public concern about the issue.
In summary, the CCAF model did not consider the following factors:
- Off-grid mining (impact: +10.8%)
- Flare gas mining (impact: +1.0%)
- Updated geographic hash rate (Kazakh miner exodus, impact: plus 1.8%)
Taking all exclusions into account, the sustainable energy mix calculation is 52.6%.
Since 2019, CCAF’s efforts to expand the scope of the index are aimed at providing the building blocks necessary for a comprehensive understanding of Bitcoin’s environmental impact.
How can I be sure my data is accurate?
According to researchers, the answer to this question can be simulated using a modified model.
For Bitcoin’s true sustainable energy use to be less than 50%, at least one of the following scenarios must be true:
- Four large-scale Bitcoin mining operations are secretly run on 100% coal-based energy.
- ERCOT, the company that operates the Texas power grid, reports four times the actual renewable energy figure.
- Despite widely reported exodus of miners from Kazakhstan, the company’s Bitcoin mining claims increased its share of global hash rate from 13.2% to 20%.
The researchers say these are based on findings from the original CCAF findings. This dates back to 2019 and should now be fixed.
What this means for sustainable mining
With the emergence of legitimate data-driven approaches to address the concerns raised by the CCAF survey, Bitcoin proponents are optimizing Bitcoin adoption among Environmental, Social, and Governance (ESG) investors. It may be possible to finally remove the obstacles that prevent
“For the first time, Bitcoin advocates have a legitimate database way to remove the obstacles that CCAF research has created in the minds of ESG investors for some time.”
The authors argue that this could also have implications for policy makers viewing the report.
“Beyond the first hurdle, Bitcoin proponents can ask two big questions that ESG investors and the White House have: Bitcoin’s macro trend towards sustainable energy? Is it quantitatively moving? And will Bitcoin be quantitatively net positive for the environment and society?”
The revised Cambridge Report’s findings on the sustainability of bitcoin mining have led bitcoin proponents and ESG investors to believe that the original proof-of-work cryptocurrency is primarily sustainable and is sustainable across all industries. It can be argued that it has the potential to position itself as a leader in energy adoption.