The value of Bitcoin is hitting an all-time high and is continuing to grow, but there is a critical factor that could inhibit its future.
In 2025, Bitcoin hit a value of $120,000 thanks to support from investors, institutions, and changing policies, per Carbon Credits. But there are growing concerns over the cryptocurrency's carbon impact and energy needs, which could inhibit its further growth.
Mining Bitcoin and other cryptocurrencies is an energy-intensive process that requires computers running computations around the clock. According to the Digiconomist Bitcoin Energy Consumption Index, Bitcoin consumes 204.44 terawatt-hours of energy per year, comparable to the amount of energy used by the country of Thailand. It also uses the same amount of water annually as Switzerland and generates a carbon impact on par with the Czech Republic.
Additionally, the International Monetary Fund (IMF) reports that by 2027, U.S. crypto and AI use could use up to 2% of global electricity and contribute 1% of total pollution. All that energy usage has critics concerned about the environmental impact outweighing or even outpacing its monetary gains, per Carbon Credits.
But there is a movement by Bitcoin miners to transition to renewable and sustainable energy options to power their mining needs. A report the outlet shared from the Cambridge Center for Alternative Finance stated that 52% of Bitcoin's electricity comes from clean sources now, including hydropower, wind, solar, and nuclear.
The clean energy options will be important for the future of Bitcoin and other cryptocurrencies. Bitcoin is being supported by investors, but some of those funds that prioritize environmental, social, and governance matters, or ESG, don't support companies that meet their sustainability standards, meaning the valuation and support might not be there the same way as expected.
TCD Picks » Upway Spotlight
💡Upway makes it easy to find discounts of up to 60% on premium e-bike brands
Governments are also showing support for clean energy options to power Bitcoin. The European Union and the U.S. are both considering scoring crypto assets based on how "clean" or "dirty" they are, while the IMF has proposed a carbon tax on crypto miners that could raise $5 billion per year in revenue while cutting carbon pollution up to 110 million tons.
Cryptocurrency isn't going anywhere, and as Bitcoin's value continues to grow, powering it with sustainable options will be key to its future.
|
What's the most you'd pay per month to put solar panels on your roof if there was no down payment?
Click your choice to see results and speak your mind. |
$200 or more 💰 
Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.
Cool Picks
