Bitcoin Mining Source of Nuclear Energy

Bitcoin Mining Source of Nuclear Energy

Crypto news Lifestyle Technology
October 1, 2022 by Super System
261
Bitcoin Mining

Data shows energy sources used for Bitcoin mining include nuclear and gas.

According to recent research from Cambridge, certain countries may have a detrimental influence on Bitcoin’s environmental imprint by outlawing BTC mining. According to recent research, the energy mix of Bitcoin (BTC) has significantly shifted over the past few years, with nuclear energy and natural gas becoming the energy sources that are fueling Bitcoin mining at the quickest rates of growth.

The Cambridge Bitcoin Electricity Consumption Index, a data source dedicated to Bitcoin mining, received a significant upgrade on Tuesday from the Cambridge Centre for Alternative Finance (CCAF) (CBECI). According to research from Cambridge, as of January 2022, fossil fuels including coal and natural gas accounted for more over 62% of Bitcoin’s entire electrical mix. As a result, 38% of the energy used by BTC came from sustainable sources.

According to the latest research, coal alone was the primary energy source for Bitcoin mining in early 2022, accounting for up to 37% of the cryptocurrency’s overall electricity use. With a share of around 15%, hydropower was shown to be the most abundant source of sustainable energy.

Although coal and hydropower still play a big role in Bitcoin mining, their percentages in the overall energy mix have been declining over the past few years. 40% of all BTC mining will be powered by coal in 2020. Between 2020 and 2021, the percentage of hydropower more than halved, falling from 34% to 15%.

In contrast, during the past two years, there has been a noticeable increase in the use of nuclear and natural gas energy for Bitcoin mining. Gas’s contribution to the BTC power mix climbed from around 13% in 2020 to 23% in 2021, while nuclear energy’s part rose from 4% in 2021 to over 9% in 2022.

Chinese miner relocations, according to Cambridge experts, were a significant factor in the sudden changes in Bitcoin’s energy mix in 2020 and 2021. The amount of hydroelectric power in the BTC energy mix significantly decreased as a result of China’s crackdown on cryptocurrencies in 2021 and the consequent miner exodus. As was previously reported, in 2021 Chinese authorities shut down a number of hydroelectricity-powered crypto mining operations.

Bitcoin Mining

The study concluded that “the prohibition on cryptocurrency mining by the Chinese government and the subsequent transfer in Bitcoin mining activities to other nations significantly harmed Bitcoin’s environmental footprint.”

The experts also noted how regional variations in the BTC electricity mix are significant. While Sweden and Kazakhstan generate roughly 98% of their power from renewable energy sources, nations like Kazakhstan continue to rely largely on fossil fuels.

The experts said that the rise in nuclear and gas energy in Bitcoin’s electrical mix indicates the “transfer of mining power towards the United States.” Natural gas accounted for more than 38% of the nation’s total electrical generation, according to the U.S. Energy Information Administration, and it produced the majority of the country’s electricity. 22% and 19%, respectively, came from coal and nuclear energy.

The analysis discovered, among other things about the most recent CBECI update, that as of September 21, 2022, the greenhouse gas (GHG) emissions connected to BTC mining stood for 48 million metric tons of carbon dioxide equivalent (MtCO2e). The predicted GHG emissions for 2021 are 14% higher than that.