Clean Energy Bitcoin
Bitcoin, the crypto with more than 50% dominance in the cryptocurrency market, is now mined globally with over 50% clean energy. Given the energy intensive process of bitcoin mining, this is big news. As we approach the Bitcoin halving event in 2024, when bitcoin mining will become even more difficult, the timing becomes even more significant.
Bitcoin Mining Energy Usage
Bitcoin mining takes a lot of energy. During the bitcoin mining process, miners compete to solve complex mathematical puzzles, a process known as Proof of Work (PoW). This consumes enormous amounts of electricity, leading to environmental concerns about carbon emissions and the depletion of fossil fuels — but that may all be changing.
The Rise of Renewable Energy
It’s no surprise that many countries, corporations, and individuals have been making strides to reduce global greenhouse emissions. Renewables are on the rise and fossil fuels are becoming less and less desirable.
The relationship between Bitcoin mining and clean energy is where things get interesting. Even though more than 50% of bitcoin mining operations are now consuming clean energy, renewable energy is typically more expensive than fossil fuels. As we approach the bitcoin halving event set to take place in 2024, it will be interesting to see whether bitcoin mining can remain above the 50% clean energy threshold — and even more interesting to see if that percentage can continue to rise.
China’s Bitcoin Mining Ban and Emissions Reduction
In 2021, China officially banned bitcoin mining. At the time, China was a major player in the mining sector, and in 2021 emissions peaked at 60.9 megatons of carbon dioxide equivalent.
Tesla Bitcoin Payments
What makes this milestone more dynamic is that Elon Musk has previously said that once bitcoin mining operations surpass the 50% clean energy threshold, Tesla will resume accepting bitcoin payments. As bitcoin — and cryptocurrency in general — continue to gain more acceptance in the mainstream, a major player like Tesla accepting bitcoin payments is huge news.
The 2024 Bitcoin halving event is a major event and milestone, and coinciding with the crypto hitting 50% clean energy usage in its mining operations adds significant dynamism to the event. If Bitcoin embraces renewable energy sources, Bitcoin mining may not only secure its future but also contribute to a greener world.