A recent study conducted by the United Nations (UN) has revealed striking details about the relationship between Bitcoin price and the energy required for mining operations. According to the researchers, there is a direct correlation between the two factors. The report, written by UN scientists, evaluated 76 Bitcoin mining countries between 2020 and 2021.
Bitcoin Mining Data
The study found that the global Bitcoin mining network consumed a total of 173.42 Terawatt-hours of electricity during this period. This was a time when the crypto ecosystem was experiencing a rally, with Bitcoin reaching its all-time high of $69,000. The UN report stated:
“The 400% increase in Bitcoin price from 2021 to 2022 triggered a 140% increase in global Bitcoin mining energy consumption.”
During this period, 67% of the electricity generated for Bitcoin mining came from fossil fuels. However, crypto entrepreneurs took several measures to increase dependence on green energy. Hydroelectric power accounted for more than 16% of the total electricity demand of the global Bitcoin mining network, while nuclear energy accounted for 9%, solar energy for 2%, and wind energy for 5%.
According to the UN report, the top ten countries engaged in Bitcoin mining during the same period, namely China, the United States, Kazakhstan, Russia, Malaysia, Canada, Germany, Iran, Ireland, and Singapore, were responsible for 92% of the global carbon footprint of Bitcoin.
Green Energy in the Mining Sector
With increasing global pressure for greener alternatives to meet energy demand, the carbon footprint of Bitcoin and the crypto ecosystem will decrease. Recently, Genesis Assets Limited (GDA), a mining and data center company with over 400 megawatts (MW) of energy production worldwide, opened a new data center in Sweden that operates 1,900 Bitcoin mining machines, thanks to the country’s growing surplus of renewable energy.
Christian Anders, the CEO of BT CX, stated in an interview that Bitcoin mining is not very popular due to high energy costs, and he commented:
“Sweden, Finland, and Norway have surplus energy and occasionally negative energy prices, and there is renewable energy, primarily in the form of hydroelectric power, in a remote location that is challenging to distribute.”
