In contrast to most industries, a new report reveals Bitcoin CO2 emission is reducing while its hash rate has been rising, according to Bloomberg analyst Jamie Coutts. Although the Bitcoin network has grown over time, the mining sector has not experienced a commensurate rise in carbon footprint. This  accomplishment was what, in the words of a Bloomberg analyst, “few industries can claim.” This development may spur a new phase of institutional investment.

Achieving the Impossible: Bitcoin CO2 Emission is Reducing While Its Hash Rate Has Been Rising

Bitcoin CO2 Emission is Reducing

On September 20, Jamie Coutts, a crypto market analyst for Bloomberg, cited statistics to prove his point. He demonstrated that the sustainable energy mix for Bitcoin has risen steadily since 2021 and is now above 50%. As a result, the emissions growth has slowed compared to the network’s ongoing expansion.

“Bitcoin as a global monetary network is scaling while its carbon impact declines. Few industries can claim this achievement.”

He claimed two factors might “catalyze a wave of institutional and even sovereign investment capital.” These factors were the global movement to stay away from fossil fuels and the changing relationship between the growth of the Bitcoin network.

The analyst continued, noting that energy accounts for well over 50% of mining’s operating expenses:

“The incentive to acquire the cheapest energy sources contributes to the network’s rising hash rate while simultaneously reducing the industry’s emissions or carbon intensity.”

Carbon intensity assesses how clean the electricity is. However, energy emissions address the greenhouse gases and air pollutants released as waste products from various energy sources and activities.

Bitcoin CO2 Emission is Reducing: Debates Regarding Bitcoin Mining’s Use of Sustainable Energy

Bitcoin CO2 Emission is Reducing

According to a Cointelegraph article from September 18, the next generation of Bitcoin miners concentrated on efficient alternative energy sources.

However, the percentage of sustainable energy utilized in Bitcoin mining has been a matter of contention. Cambridge University’s model (which has not been updated since January 2022) claims that mining from sustainable energy sources accounts for only 37.6%.

Daniel Batten, a venture capitalist and activist for climate change, claims that this number is considerably higher than 50%.

He said in an X post that the Cambridge estimates were incorrect because they still needed to consider methane mitigation and off-grid mining.

Earlier this year, Batten claimed that the number of pollutants caused by Bitcoin mining has reached its lowest point ever.

Additionally, he believes that by December 2024, the Bitcoin network will achieve carbon neutrality.

“By 2030, the Bitcoin network is projected to mitigate 10x more emissions from the atmosphere than it produces, an astonishing achievement,” claimed Batten.

In conclusion, innovation in the field of cryptocurrency is limitless. Despite frequently being the target of harsh criticism, Bitcoin has shown a remarkable capacity for change. Its accomplishment of raising its hash rate while lowering emissions intensity is a tribute to the industry’s tenacity and promise for progress.

Bitcoin disproves assumptions about the environmental impact of mining while paving the door for more environmentally friendly methods. With this change, institutional and sovereign investors will see Bitcoin as a responsible and progressive asset. At the same time, they will address concerns about its carbon footprint.

There’s still much to say regarding Bitcoin’s environmental impact. However, the industry’s commitment to sustainability is evident in individual and institutional miners’ strides to reduce emissions intensity.

As Bitcoin CO2 emission is reducing, we expect to see more discussion about the potential for cryptocurrencies to be a force for good. This argument will favor both the financial industry and the worldwide shift to cleaner and more sustainable energy sources.