Environmental issues connected to bitcoin mining have always been a subject of controversy in the crypto space.
The industry experienced a massive decline this year, affecting bitcoin miners. With that said, many crypto miners have panicked and decided to sell their BTC holdings.
But, it seems better days are coming with this good news from crypto research and analytic group Arcane Research. On September 2, Arcane released its report which lauds Bitcoin’s energy efficiency to have the opportunity to boost the energy industry.
Bitcoin Mining To Enhance Energy Production
According to the report, Bitcoin mining can actually enhance energy production, rather than cause destruction of the environment.
Apparently, the research negates the common notion that Bitcoin mining uses overwhelming amounts of energy and states as-a-matter-of-factly that BTC mining has a net-positive impact on society, the environment, and energy.
NEW REPORT: How Bitcoin Mining Can Transform the Energy Industry
Bitcoin miners are uniquely flexible energy consumers that can help solve some of our biggest energy problems.
Powered by @CowaMining
— Arcane Research (@ArcaneResearch) September 1, 2022
So, are these claims true?
Judging by the facts presented, BTC mining has indeed grown over the years due to the increase in demand. However, the Bitcoin mining industry is still a small pie of the world’s total energy consumption, one significant detail that a lot of critics have skipped.
Based on the graph below, Bitcoin miners have consumed as much as 100 TWh annually or which accounts for over 0.06% of the energy demands worldwide.
Source: Arcane Research
In comparison to other source, the figures presented should rather be insignificant at this point.
Bitcoin Mining to Help Reduce CO2 Emissions
When comparing to the gold mining and video gaming industries, Bitcoin mining consumed a little around 105 TWh every year which is very small compared to the above industries which registered at 240 TWh.
Paper production consumption comprise a bulk of energy use, to begin with.
More so, BTC mining is said to significantly decrease carbon emissions In addition to this, BTC mining systems reduce carbon emissions as many companies are starting to shift to renewable energy than fossil fuels.
So far, for every investment of $1,000, Bitcoin mining can roughly push down carbon emissions amounting to 6.32 tons annually, in comparison to what solar and wind energy can contribute, with 0.98 tons and 1.3 tons; respectively.
According to the report, BTC mining had registered a difficulty adjustment of 751,968 which is a 9.26% jump.
Despite the bearish movement of Bitcoin, miners still have strong confidence on the major crypto. However, problems with mining revenue continue to plaque Bitcoin miners.
Crypto total market cap at $960 billion on the daily chart | Source: TradingView.com Featured image from Watcher Guru, chart from TradingView.com