A new report published by Nodiens, a risk metrics data platform, predicts that, based on the trajectory of renewable energy growth in bitcoin mining, renewable energy could power 70% of bitcoin mining activities by 2030, CryptoSlate reported.
In 2011, roughly 20% of the industry's activities were powered by renewable energy, according to the MiCA Crypto Alliance. That number doubled by 2024's end.
"The composition of renewable energy has diversified over time," the report read, per CryptoSlate.
Bitcoin uses a proof-of-work consensus mechanism, according to Forbes, which requires computers to solve complex math problems to verify transactions.
This high-demand computational process uses a significant amount of energy that strains grids. On top of that, multiple bitcoin miners race to solve the equations as quickly as possible to earn small rewards. The effort exerted by the "losers" is essentially rendered futile, with the energy consumed also wasted.
The energy that bitcoin mining gobbles up increases as more miners compete for the same math problems and as more bitcoin transactions occur.
Can't afford solar panels? Here's how to get them without paying for purchase or installation Palmetto's revolutionary LightReach program gives you all the benefits of solar power without the upfront costs. LightReach lets you lease solar panels with no money down, making it easier than ever to lock in energy savings. Palmetto assumes all risk and responsibility for the panels you lease, which means you'll get reliable performance without unforeseen costs. To get started, just answer a few basic questions about your home and learn how much you can save. Learn more → |
In 2011, bitcoin mining consumed only 0.002 terawatt-hours of energy, per the MiCA Crypto Alliance. In 2024, this figure increased to approximately 140 TWh. Polytechnique Insights said that the annual electricity consumption of bitcoin mining is comparable to that of the country of Poland.
The increased demand for energy could also raise retail electricity rates because suppliers may need to source more energy to supply consumers during peak demand times.
The industry has made an admirable effort to transition industry operations to renewable energy sources, thereby reducing the environmental impact of crypto transactions. However, most crypto transactions are still largely powered by dirty fuels, contributing to planet-heating gases.
Bitcoin mining hardware also becomes obsolete every year and a half, according to Digiconomist, producing an annual total electronic waste comparable to "the small IT equipment waste of the Netherlands." Each bitcoin transaction produces an average e-waste of 375.5 grams, equivalent to the weight of 2.29 iPhone 12s.
TCD Picks » REI Spotlight
💡 REI's Re/Supply program makes it easy for REI Co-op members to shop and trade in high-quality used gear and apparel for massive discounts
|
Do you think we use too much plastic in America? Click your choice to see results and speak your mind. |
Definitely 👍 As cryptocurrency shifts to a more green-dominant energy industry, the sector must make a greater effort to address the e-waste problems that mining creates as well.
If you have e-waste at home, consider recycling your technology with companies such as Apple, Best Buy, Target, and Trashie, which have recycling programs to better manage unused or unwanted electronics.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
