Bitcoin mining energy estimated to be 0.9% of global carbon emission

Bitcoin mining energy estimated to be 0.9% of global carbon emission

A fresh research by New York Digital Investment Group (NYDIG) has revealed Bitcoin’s energy consumption will most likely remain below 0.5 per cent of the global total over in the upcoming decade.

NYDIG has published its ‘Bitcoin Net Zero’ report in September, where it revealed that BTC’s energy consumption and carbon emission would not be as higher even if the prices rise.

The study is penned by NYDIG founder Ross Stevens and Castle Island Ventures partner Nic Carter. It further discusses how the network’s overall carbon emission would change in the coming future depending on the fluctuations in BTC prices, energy consumption and mining obstacles.

One of the most significant portions of the study is when it points to the fact that BTC’s emission would still represent a very tiny fraction of the global total even if its price went through the roof by 2030. 

The study states that even in “the most aggressive, high price scenario” where Bitcoin reaches $10 trillion by 2030, its emissions would likely amount to only 0.9 per cent of the world’s total, with its energy outlay being just 0.4 per cent of the global total.

The report has also taken into consideration the data for 2020 and projected the future growth with its help. Accordingly, the researchers found that BTC consumed 62 terawatt-hours (TWh) of electricity in this year and produced 33 million tonnes of carbon dioxide emissions for representation of 0.04 per cent of global energy consumption and 0.1 per cent of global carbon emissions.

The overall carbon waste associated with Bitcoin mining, the report concluded, was “insignificant” in global terms in 2020. 

At present, Bitcoin mining uses 101 TWh per year, which is 0.45 per cent of global electricity. According to research by Cambridge University, the Bitcoin network consumes a little more energy than the country of the Philippines.

The university has also found that Bitcoin mining at present consumes less electricity than all of the United States’ refrigerators combined, and only 4.6 per cent of the total energy utilized in residential air-conditioning globally.

The NYDIG report states that “decarbonizing” prospects of Bitcoin mining in the future show a significant promise that Bitcoin’s carbon emission intensity would “decline over the longer term” owing to the development of renewable energy and countries trying to decarbonize their electricity grids.