Bitcoin mining operations have never ceased to censure its ESG concerns. To make matters worse, the mining industry suffered a sharp decline in 2022 amid the ongoing cryptocurrency winter. As a result, many major crypto miners decided to sell their BTC holdings.
However, these two factors could result in a change of scenario given the insights discussed below…
spit facts
NEW REPORT: How Bitcoin Mining Can Transform the Energy Industry
Bitcoin miners are uniquely flexible consumers of energy that can help solve some of our biggest energy problems.
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Learn more in our new report: https://t.co/gGunLOUMYo pic.twitter.com/BKlQkrDI1J
— Arcane Research (@ArcaneResearch) September 1, 2022
Crypto research and analytics firm Arcane Research released a report on Sept. 2 estimating Bitcoin’s energy consumption and its potential to transform the energy industry. The report claims that the mining industry could transform the world’s energy production for the better. Contrasting with its frequent narrative as social and environmental harm. The report added,
“Most people ignore bitcoin mining as another energy-intensive industry, but there’s one big difference: bitcoin miners are uniquely flexible in when and where they use energy.”
Ie BTC could have a net positive effect on energy and the environment. But is that really true?
Looking at the facts, the energy consumption of BTC mining operations has increased over the years given the sheer demand. BUT the industry still accounted for a very small portion of the global total. Something many critics overlook.
As shown in the graph below, the BTC miners consumed about 100 TWh of electricity per year, which is about 0.06% of the world’s total energy needs.
Source: Arcane Research
Compared to other sources, the stated value represents an insignificant amount.
For example, look at the video game and gold mining industries. The former consumed about 105 TWh per year, while the latter recorded about 240 TWh – about 2.5 times the BTC mining consumption. Finally, the papermaking consumption spoke for itself.
Additionally, BTC mining systems reduce carbon emissions as the world increasingly transitions from flexible fossil fuels to non-flexible renewable energy. The report meant
“For every $1,000 invested, a bitcoin mining system reduces emissions by 6.32 tons of CO2e per year, compared to 1.3 tons for wind and 0.98 for solar.”
The graphic below sheds more light to support this narrative,
Source: Arcane Research
Have the miners (in the Exodus state or not) felt this lasting change in mining operations? Oh well. This is illustrated by the fact that Bitcoin Mining Difficulty recently saw its highest jump since January.
According to the previous report, BTC initiated a mining difficulty adjustment at block height 751,968. The mining difficulty also increased significantly by 9.26% to 30.98 tons.
The question remains…
Undoubtedly, the above findings reflect miner conviction despite the bearish sentiment(s). However, the miners’ gain still showed a worrying scenario that has been the case for some time. 
Source: Glassnode At the time of writing, overall miner revenue continues to decline.
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