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- About 55% of Bitcoin’s energy needs came from renewable sources.
- The network hash rate has also grown exponentially in recent years.
Bitcoins [BTC] Renewable energy use hit a new all-time high (ATH) in February as perceptions of the blockchain’s green attributes change dramatically.
According to analysis By Daniel Batten, a well-known Bitcoin environmental impact analyst, the network obtained 55% of its energy needs from renewable sources, up from 54.5% last month.
To assess how the story has changed, just four years ago this figure was below 40%.
Source: Daniel Batten
What led to the increase?
Batten attributed three factors to this month’s increase.
The first was Bitcoin mining company Luxor Technology’s strategic foray into Ethiopia, harnessing 200 MW of energy from its vast renewable energy resources, mainly hydropower.
Second, Argentina-based Bitcoin miner Unblock Global used 15 MW of flared gas from the country’s crude oil reserves to power its operations.
Finally, US mining company CleanSpark, which uses low-carbon energy, has ramped up its mining activities.
Bitcoin mining, the process by which new Bitcoins are put into circulation, has been the subject of much debate and discussion over the years.
Because the process requires a lot of electricity to power large mining facilities, environmentalists and crypto-skeptics call it one of the biggest emitters of greenhouse gases.
However, emissions have fallen drastically in recent years. In fact, Bitcoin mining intensity was at an all-time low, falling 52% in four years.
Thanks to the sharp decline, Bitcoin’s environmental efficiency was higher than many other sectors at the time of writing.
Source: Daniel Batten
The demands of a growing industry
The Bitcoin blockchain has grown significantly in size as mainstream adoption has increased.
Read Bitcoin’s [BTC] Price forecast 2024-25
According to AMBCrypto’s analysis of Glassnode’s data, daily transactions on the network have more than doubled on average over the past four years.
To meet the increased demand, the network hash rate has also grown proportionately, leading to an ever-increasing demand for electricity.
Source: Glassnode