Bitcoin (BTC) consumes 56% renewable energy
The Bitcoin Mining Council (BMC) – founded by Michael Saylor – has published its first quarterly report. We learn that North Americans use 67% of renewable energy to mine Bitcoin.
32% of the global hashrate
The 23 companies of the BMC represent 32% of the global hashrate. They have pooled their data on the origin of their energy, and it appears that 67% of it comes from renewable resources.
By comparison, renewable energy accounts for only 20% of the world’s energy mix. The USA ‘boasts’ about 30% and Europe uses about 49%, Germany 48% and France 52%.
The BMC also interviewed miners from around the world with three questions:
- How much electricity do you consume?
- What is your hashrate?
- What is the total percentage of electricity from renewable resources?
Based on the data collected, the BMC estimated the share of renewables in the global Bitcoin mining industry to be around 56% at the end of Q2 2021, making it one of the ‘greenest’ industries in the world.
Darin Feinstein, the founder of Blockcap and Core Scientific, noted that this report comes at a pivotal moment, given that China no longer seems able to host more than half of Bitcoin’s hashrate.
“Despite China shutting down over 60% of the global Bitcoin network, the Bitcoin network experienced zero downtime, no bailouts, has registered no bankruptcies and simply adapted by redeploying its infrastructure into regions that have greater freedoms,” he said.
Moreover, the exodus of Chinese miners (who consumed a lot of coal) will most likely further improve BTC’s carbon footprint.
Bitcoin uses 0.117% of the world’s energy
The BMC relies on statistics from BP that estimate the total energy generated worldwide at 162,194 TWh per year. Of this grand total, the International Energy Agency reports that about 50,000 TWh are wasted.
Knowing that the Bitcoin network consumes 189 TWh, it therefore represents only 0.1% of the world’s energy production and 0.4% of the energy wasted. For more perspective, note that BTC’s energy consumption accounts for barely 2.8% of the electricity wasted in the United States alone.
Michael Saylor held a press conference to set out the findings of the report and did not hesitate to state:
“If you are an ESG activist, Bitcoin is the most ESG-friendly industry in the world.”
ESG criteria are environmental (especially CO2 emissions), social (direct impact on stakeholders) and governance criteria.
For Michael Saylor, Bitcoin ticks all the boxes: “Bitcoin has the best governance in the world: there is no board of directors, there is no CEO, no one can manipulate it. […] It is good for society because it is giving property rights to billions and billions of people. There aren’t many other technologies that offer the promise of property rights and wealth preservation to everybody on earth using a [cheap] Android phone!”
Regarding the environment, the CEO of Microstrategy stressed that no industry consumes as much renewable energy as Bitcoin. “I can’t find an industry that is material and consumes more than 68% renewable energy. I challenge anyone to find a major industry that uses more than 68% renewable energy. Or even 60% or even 50%.”
Bitcoiners are well aware that the ESG argument is merely FUD, spread by those who do not fully understand the technology. This latest statement from the mining council is a fantastic effort to educate those who would otherwise attempt to detract from Bitcoin.