Shifting Energy Sources for Bitcoin Mining
A recent analysis from the Cambridge Centre for Alternative Finance, part of the University of Cambridge’s Judge Business School, indicates a notable shift in energy sources for Bitcoin mining. Findings show that the adoption of sustainable energy within this sector has surged to 52.4%. This represents a remarkable rise from 2022, when the percentage stood at approximately 37.6%.
Predominant Energy Sources
The report emphasizes a significant change in the energy landscape: natural gas now serves as the predominant energy source, surpassing coal for the first time. As per the statistics, natural gas comprises 38.2% of the total energy consumption for Bitcoin mining—a jump from 25.0% the previous year. Coal’s contribution has drastically fallen to just 8.9%, down from an alarming 36.6% in 2022.
Composition of Sustainable Energy
Furthermore, sustainable energy encompasses a blend of renewable sources and nuclear power, comprising 42.6% and 9.8%, respectively, rounding out the total sustainable energy share in Bitcoin mining. The total electricity expenditure for Bitcoin mining is estimated at 138 terawatt-hours (TWh), which equates to nearly 0.5% of the overall global electricity consumption.
Environmental Impact and Regional Contributions
This network emits around 39.8 million metric tons of carbon dioxide equivalent (MtCO2e), underscoring the environmental impact associated with cryptocurrency mining activities.
North America plays a crucial role in this industry’s dynamics, with the United States leading the way, contributing to 75.4% of all Bitcoin mining activities, while Canada follows with a modest 7.1%. This data reflects not only the growing commitment to renewable energy within the mining community but also highlights regional trends that influence the future of digital currency mining.
