According to the most recent Q2 2022 report from the Bitcoin Mining Council, nearly 60% of the electricity utilized to run Bitcoin mining equipment originates from environmentally friendly sources (BMC).
The BMC discovered that the worldwide Bitcoin mining sector’s use of renewable power is up 6% from Q2 2021 & up 2% from Q1 2022, reaching 59.5 percent in the most recent quarter — adding that it is “one of the most sustainable industries globally” in its Q2 review of the Bitcoin network published on July 19.
The council noted a correlation between rising mining efficiency and miners’ use of more sustainable energy.
Hashrate for mining Bitcoin increased by 137 percent in Q2 over the same period last year, yet energy consumption only increased by 63 percent, showing a 46 percent gain in efficiency.
Michael Saylor Sheds More Light on the Report
In the BMC’s complete report briefing with MicroStrategy CEO Michael Saylor that was shown on YouTube on July 19, further information regarding the energy efficiency of Bitcoin mining was provided. Saylor said that the energy efficiency of miners had increased 5,814 percent compared to eight years ago.
Additionally, it was shown that Bitcoin mining used just 0.15 percent of the world’s energy supply and produced only 0.09 percent of the 34.8 billion metric tons (BMt) of carbon emissions anticipated to be produced globally.
Saylor pointed out in the briefing that predictions made by Bitcoin’s critics concerning the network’s energy consumption have thus far proven to be false.
“It has been predicted that Bitcoin will consume all available electricity for quite some time. Due to efficiency dynamics, that is not happening and will not happen.”
According to Marathon Digital Holdings CEO Fred Thiel, mining efficiency is a part of a “virtuous cycle,” which will cause the sector to become “more and more energy efficient.”
“Because energy is one of our main input costs, the efficiency gains are entirely concentrated on energy usage. As energy costs rise, we are compelled to increase our efficiency.”
Rising Bitcoin Price Helping Network Efficiency
According to the analysis, network energy efficiency has been driven by the rising price of Bitcoin (BTC), as shown by the dramatic rise in efficiency over the previous eight years.
ASIC mining equipment demand rises as price rises, which encourages device innovation. The industry becomes more efficient because more profitable and cost-effective technologies drive out less profitable ones from the market.
Members of the BMC, who collectively control 50.5% of the world’s Bitcoin mining hash power, provided the report’s data.
The volume of electricity used for Bitcoin mining in the US has caught the attention of lawmakers there.
The Energy Department (DOE) and the Environmental Protection Agency (EPA) received a letter last week from six US politicians, including Senator Elizabeth Warren, requesting that mining corporations submit reports on their emissions and energy usage.