Bitcoin Mining Report: Fossil Fuels Crash

A few weeks ago, a report was released that showed that the use of renewable energy in Bitcoin mining has almost doubled over the past ten years.

This has also contributed to a decline in the share of electricity generated from fossil resources such as coal.

Summary

• Bitcoin Mining Report
• MiCA Crypto Alliance
• Nodience

Bitcoin Mining Report

The paper, titled “Mining the Future: Bitcoin Renewables and the Path to 2030, ” was prepared by the MiCA Crypto Alliance in collaboration with Nodiens.

It's a 19-page PDF that examines the environmental impact of Bitcoin mining energy consumption, with a particular focus on the so-called carbon footprint and CO2 emissions.

The report highlights four main aspects.

The first finding suggests that Bitcoin mining is indeed becoming significantly more environmentally friendly. In fact, between 2011 and 2024, the share of renewable energy in its energy mix increased from 20% to 41%.

In other words, it has almost doubled in thirteen years and now accounts for almost half of the world's energy consumption in Bitcoin mining.

The second key aspect is perhaps the most striking.

The report mentions that the use of coal as an energy source for Bitcoin mining has dropped from 63% to 20% over the same period.

This is a real disaster, given that coal has become the most common energy source for Bitcoin mining (especially in China), but its share has now dropped to less than half that of renewables.

The report concludes that at this rate, at least 70% of Bitcoin mining is expected to come from renewable energy sources by 2030.

However, the fourth and final point cautions that in absolute terms, carbon emissions could continue to rise for several more years, especially if the Bitcoin price goes through other growth phases before stabilizing and eventually starting to decline.

The report was prepared by Ayush Ladda of the DLT Science Foundation, Juan Ignacio Ibañez of the MiCA Crypto Alliance, Kamil Tylinski and Paolo Tasca of Nodiens.

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Nodiens data

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The Nodiens data on which this report is based shows a clear trend towards increased use of renewable energy, driven by the economic incentives built into Bitcoin, but also, above all, by technological advances and the global drive for sustainability.

Nodiens is a true metrics platform that provides financial analytics and social health assessments for over 4,000 cryptocurrencies, including over 300 ESG metrics related to climate impact and decentralization.

Its data is collected daily from over 10 million sources on platforms such as Telegram, X, Reddit, Yahoo Finance, Stocktwits and GitHub.

Nodiens is also a key partner of the MiCA Crypto Alliance.

MiCA Crypto Alliance

The MiCA cryptocurrency alliance helps companies navigate the complex regulatory environment.

Alliance members gain access, for example, to a comprehensive set of ESG data, enabling them to comply with MiCA's legal and environmental standards.

One of the areas of work of the MiCA Crypto Alliance is the preparation of official documents that comply with the MiCA requirements, as well as the collection of sustainability data, as they will become a legal requirement for all cryptocurrencies in the EU from December 2024.

In fact, under the new EU Markets in Cryptocurrency Regulation (MiCA), any entity wishing to publicly offer cryptocurrency or list it for trading on a platform in the European Union must publish a MiCA-compliant white paper along with the required sustainability data. This also applies to cryptocurrency service providers (CASPs), such as exchanges and custodial wallet providers.

Nodience

Last week, Nodiens announced the launch of its platform, which tracks over 100 financial, societal and ESG risk metrics for over 4,000 Web3 assets.

These parameters include prices, market cap, volumes, liquidity concentration and cost, pairs, stablecoin peg rates on both CEX and DEX.

There are also metrics that track real community engagement using sentiment, trust, and popularity indices, as well as trending topics on X, Telegram, Reddit, Github, Stock Twits, and Yahoo Finance, allowing you to identify manipulation, assess sentiment, and catch early warning signs.

Other parameters analyze energy consumption, decentralization index, node distribution, and transaction performance on over 200 blockchains.

Additionally, the data analytics team at Nodiens publishes monthly articles covering trends, network behavior, community health, and risk dynamics across major protocols.

Source: cryptonews.net