- Bloomberg analyst Jamie Coutts recently highlighted the rapid rise of sustainable energy in BTC mining.
- The energy-intensive process of Bitcoin mining has historically been criticized by environmentalists.
- The carbon emissions associated with BTC mining are not rising proportionately to the exponential rise in Hashrate.
Jamie Coutts, a crypto market analyst for Bloomberg, recently highlighted the rapid rise of sustainable energy sources in BTC mining. Coutts’ comments were in response to a new note on the Bloomberg Terminal, which cited data to contradict claims surrounding the heavy energy use associated with Bitcoin mining.
Coutts took to X (formerly Twitter) earlier today to share the apparent reversal of Bitcoin’s energy narrative amid the rise of sustainable energy alternatives. The Bloomberg analyst addressed the claims surrounding the energy-intensive process involved in BTC mining, which has been a consistent criticism of Bitcoin in terms of environmental impact.
The analyst lauded Coin Metrics, Jaran Mellerud, and Daniel Batten for their contributions to the significant improvement in data visibility and modeling, which led to less variability between models. Thanks to an accurate assessment of the application-specific integrated circuit (ASIC) machines used in BTC mining, the Cambridge Centre for Alternative Finance (CCAF) revised its 2022 estimate of electricity consumption from 105.3 terawatt-hours (TWh) to 95.5 TWh.
Daniel Batten, a climate-tech venture capitalist, reportedly made further enhancements to address the deficiencies in the CCAF’s model. CCAF’s model excluded new sustainable energy sources, including flared gas and off-grid power, as well as the geographical shift to less fossil-fuel-intensive grids over the past three years.
“Since China’s mining ban in mid-2021 when emissions peaked at 60.9 megatonnes of carbon dioxide equivalent (CO2e), emissions have declined 37.5%, suggesting the concern about Bitcoin’s carbon footprint is being overstated,” the analyst added.
Bitcoin hash rate and emissions data gathered by Bloomberg showed that despite a four-fold increase in hash rate, the carbon emissions associated with BTC mining had only gone up by 6.9% over the past four years. Coutts reminded his followers that Bitcoin miners did not emit electricity but were consumers of purchased electricity.