Cryptocurrency mining, specifically Bitcoin (BTC), has long been criticized for its environmental impacts, with many claims of it relying heavily on coal for energy. This despite the fact that renewable sources could eliminate the negative ecological effects of BTC mining - and now a recent report confirms it.

Investor and ESG analyst Daniel Batten has determined that renewable sources are now fueling more than half of BTC mining. A whopping 23% is reportedly derived from hydropower and an additional 26.9% from wind, solar, and nuclear sources. This means only 22.9% of the process is fueled by coal, 21.14% by gas, and a measly 2.4% from other non-renewable sources.

Comparing the BTC mining process to that of electric vehicles, Batten found the same amount of gas is used for mining, but with 38% less coal as a source of energy. His BEEST (Bitcoin Evolutionary Energy Supply Transformation) model supports the assumption that the share of renewable sources used for mining will continue to increase by 6.2% every year. This points to a significant decrease in BTC's fossil fuel demands as water, solar, and wind energy become more prominent.

Therefore, it is safe to say that the dependence on mining in renewable energy sources is greater than first imagined, and will continue to improve in time. Such a shift in power sources would largely mitigate the negative environmental impacts of BTC mining, ensuring it remains a cornerstone in the market for years to come.



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