Bitcoin mining has achieved a new sustainability milestone, with 54.5% of its energy consumption now powered by renewable sources, according to the Bitcoin ESG Forecast, a research series by Daniel Batten, a co-founder of methane mitigation fund CH4 Capital.
The industry has been reducing its carbon footprint and addressing one of the most critical concerns. Public scrutiny of the environmental impact of digital currencies has intensified with its rising popularity.
Bitcoin mining, the process by which new bitcoins are entered into circulation, is known for its high energy consumption. The industry’s pivot to renewable energy sources such as solar, wind, and hydroelectric power aligns with global efforts to combat climate change and promotes the adoption of clean energy technologies.
The push for sustainable mining practices is not just about environmentalism; it’s also a strategic move for the industry. As the world increasingly values sustainability, the cryptocurrency sector is positioning itself to be more attractive to environmentally conscious investors and users.
The use of renewable energy can lead to cost savings over time for Bitcoin producers, or miners, as these sources become more efficient and less expensive than traditional fossil fuels.
Recent reports citing on-chain data suggest that miners have been offloading Bitcoin en masse.
Bitcoin is also one of the most popular blockchains for non-fungible tokens. The network became the fourth blockchain to surpass US$2 billion in historic NFT sales, according to CryptoSlam.