A recent study conducted by the United Nations showed that there is a direct correlation between the price of Bitcoin (BTC) and the energy required for mining operations.
United Nations scientists assessed the activities of 76 Bitcoin mining countries between 2020 and 2021 and found that the global Bitcoin mining network consumed 173.42 terawatt hours of electricity. During this period, the crypto ecosystem was experiencing a bull run, with Bitcoin rising to an all-time high of $69,000. The United Nations report emphasizes:
“The 400% increase in Bitcoin price from 2021 to 2022 has resulted in a 140% increase in energy consumption by the global Bitcoin mining network.”
At that time, fossil energy accounted for 67% of Bitcoin mining power generation. However, cryptocurrency entrepreneurs have taken active steps to increase reliance on green energy.
Hydroelectric power supplies more than 16% of the total power demand of the global Bitcoin mining network; nuclear energy, solar energy and wind energy account for 9%, 2% and 5% respectively.
According to a United Nations report, the top 10 Bitcoin mining countries at the time – China, the United States, Kazakhstan, Russia, Malaysia, Canada, Germany, Iran, Ireland and Singapore – were responsible for 92% to 94% of global carbon emissions, and Bitcoin of water and land footprint.
The global push for greener alternatives to meet grid demands will also help reduce the carbon footprint of the Bitcoin and crypto ecosystem.
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Recently, Genesis Digital Assets Limited, a mining and data center company with a global power generation capacity of over 400 megawatts (MW), opened a new data center in Sweden running 1,900 Bitcoin mining machines, benefiting from the country’s rapidly growing renewable energy sector. There is a surplus of renewable energy.
BT.CX founder Christian Anders told Cointelegraph that Bitcoin mining is not common due to high energy prices. However, he added:
“Sweden, Finland and Norway have an energy surplus with periodic negative energy prices, and this is mainly renewable energy in the form of hydropower, which is located in remote areas and difficult to distribute.”
Meanwhile, Bitcoin mining equipment manufacturers continue to offer energy-efficient hardware. At the World Digital Mining Summit on September 22, Bitcoin miners shared their plans to help decarbonize the crypto ecosystem.
Bitmain launches efficiency-focused Antminer S21, while TerraWulf chief operating officer Nazar Khan emphasized that the role of Bitcoin mining rig manufacturers “is to position our Bitcoin mining loads where this happens, and where we How to facilitate the decarbonization process.”
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