Bitcoin mining is increasingly sustainable

The latest report released recently by the Bitcoin Mining Council (BMC) reveals that now 59.5% of Bitcoin mining activity globally is powered by a mix of sustainable energy sources. 

The energy sources used for Bitcoin mining

BMC is a global forum of Bitcoin mining companies, and to produce this latest report covering the second quarter of 2022, it collected data from more than 50% of Bitcoin miners globally. 

The data is provided on a voluntary basis, and it refers to only half of the world’s miners, but thanks to this, it is possible to calculate estimates that indicate the main trends taking place in this sector. 

Underlying the report is a survey of BMC members. They collectively reported that 66.8% of the electricity they consumed in the quarter came from a sustainable energy mix.

Based on this data, the BMC estimated that globally the percentage of Bitcoin mining done with sustainable energy drops to 59.5%, but with an increase of about 6% year-on-year. This would make Bitcoin mining “one of the most sustainable industries globally”.

In addition, the report estimates that the technological efficiency of miners has also increased by 46%, indicating that over time it could become even more efficient and consume less and less electricity. 

According to other estimates, power consumption resulting from Bitcoin mining has dropped significantly over the past few months, from an annual average of more than 200 TWh in June to the current estimate of just over 130 TWh. However, it is worth mentioning that current levels are significantly higher than the 80 TWh estimated in early 2021. 

Michael Saylor: mining is getting more efficient

The president of the association is the celebrated founder and CEO of MicroStrategy, Michael Saylor, who commented on this data by saying that in the second quarter of 2022 the hashrate and security of the Bitcoin network improved by 137% year-on-year, while energy consumption increased by only 63%. 

The BMC also released a video of the presentation of this report. 

Bitcoin Mining Council Q2 2022 Briefing

According to historical data, there are now five consecutive quarters in which the BMC estimates that more than 50% of the energy used by Bitcoin mining comes from sustainable sources, so there are those who are calling on Elon Musk to fulfill his promise, and reactivate BTC payments on the Tesla website. 

#Bitcoin Mining sustainable power mix is now 59.5%,

+50% for the 5th quarter in a row.

Your move @ElonMusk ? pic.twitter.com/GHyIzdd41G

— Bitcoin Archive ??? (@BTC_Archive) July 19, 2022

However, those published by the BMC are biased estimates, so it is unlikely that Musk would decide to take them as a reference for possibly deciding to rehabilitate Bitcoin payments.