Editor's note: The Cambridge Centre for Alternative Finance (CCAF) released the latest version of the Bitcoin Mining Sustainability Report, providing a crucial new data point: currently, 52.4% of the Bitcoin network's computing power comes from 'zero-emission' energy. In the last report, this proportion was only 37%. In other words, the 'green transition' of Bitcoin mining in terms of energy structure has progressed far beyond many people's expectations.
Today, the Bitcoin network has:
More than half of its computing power comes from zero-carbon energy.
Carbon intensity lower than most industries.
Equipment recycling rate exceeds 86%.
Methane reduction is having a substantial impact
The following content is a summary of key points from @DSBatten's report, translated by Odaily Planet Daily:
Full report available at: Cambridge Digital Mining Industry Report
Note: The research team conducted an in-depth survey of 49 real operating Bitcoin mining companies, rather than merely using outdated models to estimate data. This significantly increases the credibility of the entire report and provides a more comprehensive understanding of Bitcoin mining's energy usage.
1. 26% of mining comes from 'off-grid' power, making green energy more common.
A significant new finding is that globally, 26% of Bitcoin mining power comes from 'off-grid' energy (i.e., energy not connected to the mainstream power grid). These mining sites are mostly located in areas with lower electricity costs and close to clean energy sources, such as mountainous areas rich in hydropower, plateaus with strong wind energy, regions abundant in geothermal resources, and even places generating power directly from flare gas.
In contrast, early reports mostly assumed that mining was simply an 'online' activity, ignoring the existence of 'off-grid' miners. In reality, off-grid mining is more likely to utilize renewable energy or waste energy, resulting in a relatively smaller environmental impact.
Source: Deep Tide TechFlow
2. Carbon intensity has significantly decreased, lower than many traditional industries.
In terms of carbon emissions, this report provides a latest estimate: the Bitcoin network produces 288.2 grams of CO₂e/kWh per kilowatt-hour of electricity. This figure is already lower than many large traditional industries and is very close to independent researcher Daniel Batten's estimate (266 grams), indicating that the data is generally reliable.
Source: Deep Tide TechFlow
More importantly, the annual total carbon emissions of the entire Bitcoin network are approximately 39.8 million tons of CO₂e, a figure lower than many people imagine, and there has been no significant growth over the past four years. This is mainly due to two factors:
Mining machines are becoming increasingly efficient, with stronger computing power per unit of energy consumed;
More and more miners are actively relocating to regions that use clean energy.
Source: Deep Tide TechFlow
3. Methane reduction measures are beginning to take effect, with 5.5% of emissions being offset.
In addition to 'what kind of electricity is used', the mining industry is starting to adopt some more 'radical' carbon reduction methods. For example, some mining companies directly use flare gas from oil and gas fields (which would otherwise be burned) to generate electricity for mining. This way, not only is mining achieved, but methane is also prevented from being directly released into the atmosphere.
With the inclusion of this 'negative carbon energy', the net emissions of the Bitcoin network have dropped to 37.6 million tons of CO₂e, a reduction of about 5.5% from the initial data. This contribution to emission reduction is no longer negligible.
Source: Deep Tide TechFlow
4. The recycling rate of mining machines reaches 86.9%, and electronic waste management is better than most industries.
Many people worry that the rapid upgrade of Bitcoin mining equipment will produce a lot of electronic waste. This report also addresses this issue:
86.9% of equipment is recycled, resold, or reused, and has not been directly discarded;
Only 3.2% of companies do not have a dedicated electronic waste management plan.
This indicates that the Bitcoin mining industry is actually much more environmentally conscious than many outside perceptions suggest.
Source: Deep Tide TechFlow
5. Mining equipment is becoming increasingly efficient, and many people underestimate this point.
The Cambridge team also specifically mentioned that many past criticisms of Bitcoin as 'energy-intensive' actually overlook a key variable: the efficiency of equipment has been improving.
From early CPUs/GPUs to ASIC dedicated chips, each iteration brings improvements to computing power per unit of energy consumed. Just as those who criticized the internet for being 'too energy-consuming' did not consider Moore's Law, many people today overlook the energy efficiency revolution brought by advancements in mining machines.
Source: Deep Tide TechFlow
6. The 'illegal use' of Bitcoin is decreasing, not increasing.
The report also explains the use of Bitcoin in illegal activities: data shows that the proportion used for illegal purposes peaked in 2019, with absolute numbers reaching a peak in 2022, and now both indicators are on the decline.
Source: Deep Tide TechFlow
This report is a positive correction to the stigmatization of Bitcoin. It breaks the outdated impression that 'Bitcoin = fossil energy' and provides a new factual basis for lawmakers, regulators, and the media.
This article is reproduced with permission from: (Deep Tide TechFlow)
Original author: DSBatten
'Still think Bitcoin is polluting the Earth? Cambridge's latest report provides data that debunks five major myths.' This article was first published in 'Crypto City'.
