Over the past 13 years, the use of hydrocarbon fuels in Bitcoin mining has declined dramatically, and the practice of leveraging coal energy also demonstrates a similar tendency.
The share of coal energy usage in Bitcoin mining was 20% last year. In 2011, this figure was recorded at the 63% mark. The relevant information is contained in a report published by the MiCA Crypto Alliance industry organization in collaboration with the risk metrics data platform Nodiens.
At the same time, the share of renewable energy used in Bitcoin mining continues to show growth. On average, the corresponding indicator increases by 5.8% per year. The share of renewable energy use in Bitcoin mining in 2024 was recorded at the 40% mark. In 2011, this figure was 20%.
The mentioned data reflects a steady shift in the Bitcoin mining area towards cleaner and more sustainable energy solutions. The report also contains a projection according to which the decarbonization process in the specified area will continue. Moreover, it is predicted that BTC’s environmental footprint will demonstrate mitigation in the coming years.
Coal energy consumption during Bitcoin mining, according to data contained in the report, decreases by an average of 8% annually. At the same time, global coal consumption shows the opposite dynamic, consistently increasing.
Data from the International Energy Agency (IEA), a Paris-based intergovernmental policy organization, suggests that global coal use surged to a new record last year. The corresponding figure was 8.8 billion tons.
According to data from the IEA, global demand for coal energy will remain close to record levels until 2027. Coal consumption is expected to grow in emerging economies such as India, Vietnam, and Indonesia in the coming years.
The report outlines five future scenarios for Bitcoin’s carbon footprint. These scenarios range from a bearish $10,000 BTC price to an ultra-bullish $1 million probability.
The study also includes five BTC price scenarios. In this case, $10,000 is considered as a low-price scenario. A base price scenario provides for $110,000. A medium-price scenario was fixed at the $250,000 mark. A high-price scenario provides $500,000. A very bullish scenario was recorded at the $1 million mark. It is worth clarifying that the mentioned indicators provide for the price per BTC.
In a medium-price scenario, renewable energy is estimated to account for 59.3% to 74.3% of total Bitcoin electricity usage. It was noted that this indicator depends on the policy scenario. The report clarified that the mentioned projection does not take into account the use of nuclear energy. It is also expected that the peak energy consumption for Bitcoin mining will be recorded around 2030. It is worth noting that a similar forecast is contained in a study by the digital asset platform NYDIG released in September 2021.
NYDIG’s estimates suggest that even with Bitcoin’s high-price scenario, electricity consumption will peak at 11 times its level, recorded in 2020. This figure represents 0.4% of global primary energy consumption and 2% of global electricity generation.
As we have reported earlier, GoMining Launches $100 Million Bitcoin Mining Fund.
