Under some circumstances, bitcoin mining is now more environmentally friendly than the technology used in electric cars. Yet, the mining sector is evolving toward more sustainability.
According to research from the cryptocurrency sector's Daniel Batten, hydro energy is the primary energy source for Bitcoin mining when off-grid mining is taken into consideration. This percentage is 23%.
Batten began by citing a study from the Cambridge Centre for Alternative Finance, which noted that coal was the primary energy source when off-grid mining was not taken into account.
He notes that, unlike EVs, Bitcoin mining is not 100% tethered to the grid, whereas EVs “will be bound by the sustainability of the grid it happens to be on.”
In this case, if EVs are distributed globally proportionally, the industry would “mirror global grid-mix and therefore to have coal as their major energy source (36.7%), followed by gas (23.5%).”
Some businesses, including as OceanFalls, Blockfusion, Hut8, Iris, Sato, Terawulf, Statar/Lake Parime, Gridshare, and HPG, provide environmentally friendly mining solutions. Sustainable Bitcoin mining is becoming more popular, which should eventually reduce the need for non-renewable energy sources.
Batten was adamant that the picture created by the energy use of Bitcoin during the previous year was not totally true. According to Batten's claim on Twitter, the only significant worldwide business whose primary energy source is not fossil fuel is bitcoin mining.
He observes that starting January 2020, "fossil fuel sources have been declining at a combined 6.2% per year."
This is consistent with more recent figures that claim 52.6% of Bitcoin mining is currently powered by green energy.
The use of sustainable energy for Bitcoin mining has received increased support from the crypto community. Greenpeace USA, which previously tweeted about the Skull of Satoshi serving as the mascot for Bitcoin's dependency on fossil fuels, has also taken notice of it.
The mascot was created by environmentalist and artist Benjamin Von Wong, who said that it was a phenomenal accident. He notes that there is a lot of heated discussion surrounding the mascot but encourages individuals to fight for what is good— ensuring that Bitcoin brings fairer financial inclusion while also reducing its dependence on non-renewable energy.