The UN, in a recent report, looks at the energy consumption of Bitcoin, highlighting a close link between the price of BTC and its energy consumption. But what is it really?
The energy consumption of Bitcoin: a subject of concern
The UN report revealed that Bitcoin mining, although a dematerialized activity, has a considerable carbon footprint.
During the period 2020-2021, Bitcoin consumed 173.42 terawatt hours of electricity. It thus positions itself as a major consumer of energy.
But that’s not all, the meteoric rise in the price of Bitcoin in 2021 has led to a 140% increase in this consumption. An alarming situation, especially when we know that 67% of this electricity comes from fossil sources.
Fortunately, all is not dark as reported Cointelegraph. If the UN report highlights current abuses, it also highlights the efforts made by the crypto community to turn to greener energy sources.
Hydropower, nuclear, solar and wind power now represent a growing share of the energy consumption of Bitcoin mining.
Many initiatives seek to reduce the carbon footprint of Bitcoin. Among them, the opening of data centers powered by renewable energies is increasingly common.
Equipment manufacturers, key players in the ecological transition
The Bitcoin mining industry is aware of current environmental issues and is working hard to offer more environmentally friendly solutions.
Equipment manufacturers, in particular, play a critical role in this transition. Companies like Bitmain are launching more energy-efficient models, and many industry players are moving to locate their mining operations in regions with abundant renewable energy.
The environmental impact of Bitcoin is undeniable. However, in the face of current climate challenges, the crypto community is showing that it is ready to evolve and adapt.
Although the road to 100% green crypto is still long, the first steps have already been taken. And who knows, maybe Bitcoin, once singled out for its energy consumption, will one day become a symbol of ecological transition. Furthermore, discover how El Salvador is revolutionizing Mining with green energy.
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