Bitcoin Mining: Demand for Traditional Fossil Fuels Plummets from 63% to 20%, Renewable Energy Becomes the New Favorite!
Bitcoin mining, which initially relied heavily on fossil fuels, especially coal, seems to have changed in recent years. According to a new report released by the MiCA Cryptocurrency Alliance in collaboration with Nodiens, industries that once heavily depended on fossil fuels are now rapidly shifting towards renewable energy.
Data shows that the share of coal in the energy mix for Bitcoin mining has drastically dropped from 63% in 2011 to 20% in 2024, replaced by clean energy sources such as solar, wind, and hydroelectric power, with these renewables being adopted by mining sites at an average annual rate of 5.8%. The report also predicts that this trend will continue, with further decarbonization expected in the industry over the coming years.
Despite the decreasing use of coal in Bitcoin mining, global coal consumption is experiencing a surge. The International Energy Agency (IEA) predicts that coal demand will remain high in the future, especially in emerging economies like India and Indonesia.
At the same time, the continuous decline in the cost of renewable energy in recent years has highlighted its economic viability, particularly in regions rich in hydropower in Northern Europe and those with abundant wind power like Texas in the United States, where clean energy mining sites are starting to take shape.
This indicates that although global coal consumption is still rising, Bitcoin miners have already taken the lead in the decarbonization process. However, challenges remain. According to the digital asset platform NYDIG, if the price of Bitcoin skyrockets to $500,000, its energy demand could increase 11 times compared to 2020, accounting for 0.4% of global primary energy consumption.
This exponential growth in energy demand makes increasing the share of clean energy crucial for the sustainable development of the industry. This forecast highlights the increasingly severe challenge of balancing BTC energy demand with sustainable development goals.
Therefore, it appears that the policy environment, technology costs, and energy infrastructure will be key factors determining whether this green transition can be sustained.
Do you think Bitcoin mining can truly achieve "net-zero" emissions? If China opens green electricity mining sites, would you support it? If China opens green electricity mining sites, would you support it?
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