The major activities that affect the climate are human-related. These activities include gold mining, gas flaring, and the likes.
However, many Bitcoin anarchists turn a blind eye to these harmful activities and their effects. At the same time, they choose to exaggerate the impact of Bitcoin on climate change.
Over the years, Bitcoin mining has been portrayed as a non-eco-friendly activity. Thankfully, there is a gradual turnaround in these beliefs.
Some policymakers and environmentalists are beginning to see Bitcoin from a positive angle. They are slowly beginning to realize that Bitcoin mining can be powered with renewable energy, and uncombusted methane.
These discussions are not yet common. But it is a conversation that we need to start having. How does Bitcoin help mitigate climate change?
Bitcoin Mining Can Thrive Using Renewable Energy
Bitcoin mining leverages renewable and excess energy. These energy sources include solar, wind, hydro, nuclear, and geothermal. However, it is worth noting that the industry also uses other energy sources, including coal and natural gas.
It might be shocking to know that Bitcoin contributes to decarbonizing CO2 emissions. Most of all, it plays a crucial role in reducing global warming. With the increase in the adoption of these sources, green energy will be more on the upward side.
This might not be so for other industries, such as traditional financial services. They burn much more energy than Bitcoin mining, but this topic is rarely discussed.
A January report by Bitcoin Mining Council shows the Bitcoin industry increased its use of renewable energy to 58.5%. This was only for just Q4 of 2021.
In some jurisdictions, Bitcoin mining uses purely green energy. A good example is Norway. This is due to Norway's adoption of hydropower and other various renewables. As a matter of fact, Norway’s electricity is 100% generated from green sources, and Bitcoin miners over there are utilizing it judiciously.
Bitcoin Mining Can Contribute to Global Warming Reduction
Harald Rauter discussed this in his interview on the What Bitcoin Did Podcast. Here, he shared his insights on how Bitcoin helps mitigate climate change.
According to him,
“Can we run the same models but with better data? Can we get to a 1.5-degree world? And that’s the ultimate nuclear argument for how Bitcoin mining actually makes sense…where does it make sense to engage with policymakers, to actually build on their language, with their models, rerunning it but with Bitcoin mining, and Bitcoin in the various dimensions as the X factor in the equation.”
In 2016, the Paris agreement was adopted by over 196 countries. It aimed to keep global warming between 1.5 and 2 degrees Celsius.
Bitcoin mining can help mitigate climate change and keep it from reaching or exceeding 1.5°C. Its utilization of methane is one great way. Methane is regarded as the deadliest greenhouse gas in 2022.
The processes involved in Bitcoin mining enable it to slash methane emissions. Since all it needs is an internet connection, it is the only technology capable of combusting methane up to a level that enables us to achieve 1.5°C warming.
Let’s briefly look at how Bitcoin fits into this. A study by UN Environmental Programme (UNEP) shows that “cutting methane is the strongest lever we have to slow climate change over the next 25 years.”
This is so because methane that escapes into the air unburnt is capable of causing global warming 30 times more than CO2. Although it might be in the atmosphere for about a decade, its impact is so huge that it causes irreversible climate change.
Though the oil and gas industry introduced “flaring” as a way of burning methane, it is only 92% efficient. The remaining 8% of methane is quite significant in impacting the climate.
This is where Bitcoin mining comes in. It feeds on the remaining 8% methane. Bitcoin mining is capable of reducing methane emissions by 23%. This figure is only through the combustion of flared gases from oilfields and landfills.
Final Thoughts
Understanding Bitcoin’s contribution to mitigating climate change will allow a better appreciation of the cryptocurrency. The year 2022 has been a positive turning point for Bitcoin. Thankfully, we now know better.
Bitcoin mining is more energy-efficient than most other industries. It harnesses renewable and excess energy. But this is hardly talked about by “so-called” journalists, media outlets, or researchers.
It even has a significant impact on keeping global warming at bay. Bitcoin mining does this by utilizing methane, the deadliest greenhouse gas. In so doing, methane emission into the atmosphere is drastically reduced.
