Research: 62% of the total energy consumed in Bitcoin mining still comes from fossil fuels

According to a recent analysis by the Cambridge Center for Alternative Finance (CCAF), fossil fuels were used to produce about 62% of all the energy used by Bitcoin since January 2022. This indicates that in 2022, only 38% of the total energy consumption in Bitcoin mining came from renewable sources.

The study, submitted to the CCAF’s Cambridge Bitcoin Electricity Consumption Index (CBCI), reveals the dramatic shifts in the mix of electricity used for Bitcoin mining over the previous three years. According to the data, coal and natural gas are the energy sources for bitcoin mining that are expanding the most.

Contribution by different energy sources in Bitcoin mining

By early 2022, coal had grown significantly to account for over 37% of the energy used for Bitcoin mining, making it the dominant power source. On the other hand, with 15% of the overall energy sources used in BTC mining, hydropower led the way in terms of sustainable energy sources. However, usage of hydropower dramatically decreased, falling from 34% in 2020 to 15% in 2021.

However, over the past two years, the use of nuclear and natural gas energy has increased in the Bitcoin mining process. Natural gas usage increased significantly from 13% in 2020 to 23% in 2021, while nuclear energy consumption improved massively from 4% in 2021 to around 9% in 2022.

The report blames the departure of major Bitcoin mining companies from China as a result of the government’s crackdown for the weak performance in the Bitcoin energy mix and price variations between 2020 and 2021.

Notably, CCAF study claims that China provided over 65% of the global hash rate, with the majority of the energy coming from coal (40.4%) and hydropower (33.7% of the total resources). 

The environmental advocacy group Greenpeace USA’s suggestion from earlier this month is worth noting that states that Bitcoin should switch to PoS consensus mechanism since PoW is causing the climate problem.

However, Bitcoin proponent and MicroStrategy’s executive chairman Michael Saylor believes Bitcoin mining’s environmental impacts are just lobbyist propaganda, as TheCoinRise reported.