Bitcoin Mining is Becoming More Environmentally Friendly
Daniel Batten, co-founder of CH4 Capital, has reported that bitcoin mining is using a record high level of sustainable energy and actively reducing emissions. Batten estimates that 54.5% of the energy used for bitcoin mining is sustainable, making it the only major industry powered by this type of energy. Contradicting previous notions, Batten argues that bitcoin mining is no longer dependent on fossil fuels since miners have transitioned to greener on-grid or off-grid locations following the Chinese mining ban.
Outdated Models and Undisclosed Emissions
Batten critiques Cambridge’s outdated model on bitcoin emissions and states that there is no contemporary data supporting the idea that bitcoin is primarily powered by fossil fuels. Furthermore, Batten’s research reveals that undisclosed companies are utilizing methane emissions to power their mining operations. Although this process results in carbon dioxide byproduct, Batten explains that using methane is a better alternative to letting it vent into the atmosphere as methane is significantly more warming than CO2. Currently, 22 mining companies are directly offsetting 7.3% of network emissions without using carbon instruments.
Achieving Greenhouse Negativity
While bitcoin still produces more emissions than it mitigates, Batten emphasizes that the industry has the potential to become the fastest in achieving greenhouse negativity without the need for offsets. By continuing to use sustainable energy and exploring further emissions reduction strategies, bitcoin mining has the opportunity to set an example for other industries in terms of environmental responsibility.
Hot Take: The Sustainable Future of Bitcoin Mining
According to CH4 Capital co-founder Daniel Batten, bitcoin mining has made significant progress in adopting sustainable energy sources and reducing emissions. With 54.5% of the energy used being sustainable, bitcoin mining stands out as the only major industry predominantly powered by this type of energy. Additionally, miners have transitioned away from fossil fuels, making bitcoin mining a greener process. The industry has not only reduced emissions but also actively mitigates them, with 7.3% of network emissions offset without relying on carbon instruments. Though there is still work to be done, bitcoin mining has the potential to become a leader in achieving greenhouse negativity.
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