SNEAK PEEK:

  • New data from BEEST reveals that Bitcoin mining in the US has a negligible impact on the environment.

  • The impact of Bitcoin mining on the environment depends on the source of energy used.

  • The U.S. utilizes 47.7% of worldwide hashrate, using 5.42 GW of power.

New data released by a venture capital firm has shed light on the energy consumption of Bitcoin mining in the United States, revealing that the industry is not as damaging to the environment as some had previously thought.

The data, which was compiled by a model called BEEST (Bitcoin Energy and Emissions Sustainability Tracker), showed that the U.S. consumes around 47.7% of the global hashrate, which translates to an estimated 5.42 GW of electricity consumption.

However, the report also noted that the impact of Bitcoin mining on the environment cannot be accurately measured by electricity consumption alone, as the source of the energy is also a crucial factor. If the energy is sourced from coal, for example, the impact is severe, while hydroelectricity has a negligible impact. Additionally, the positive impact of using previously vented methane gas from landfills to power Bitcoin mining, which has a 10x more positive impact than coal.

The report went on to explain that the methodology used by the widely cited Cambridge Bitcoin Energy Consumption Index (CBECI) was outdated and that a revised model was being built that would use an average of the CBECI and Luxor indexes, cross-referenced against a calculated net J/TH energy efficiency of the network. 

The research also stated that because the mining network is transparent, the environmental effects of individual mining businesses can be reliably monitored.

The report concluded that a balanced appraisal of the environmental impact of bitcoin mining was necessary, taking into account both positive and negative externalities. While the negative impact of Bitcoin mining has been quantified, the positive impact is currently evolving too quickly to be accurately measured.

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