The Cambridge Centre for Alternative Finance (CCAF) has released an updated version of its Cambridge Bitcoin Electricity Consumption Index (CBECI), offering new insights into the greenhouse gas emissions associated with Bitcoin. This enhanced tool provides daily estimates of both annualized and total emissions linked to the cryptocurrency.
According to the latest findings, approximately 199.65 million tonnes of carbon dioxide equivalent (MtCO2e) can be attributed to Bitcoin since its launch, with a staggering 92% of this total accumulated since 2018. CCAF notes that these emissions account for roughly 0.10% of global emissions, comparable to the total emissions produced by nations such as Nepal (48.37 MtCO2e) or the Central African Republic (46.58 MtCO2e).
The CBECI was originally launched in July 2019, and it was complemented by a Mining Map in May 2020, which illustrates the geographical distribution of Bitcoin’s hashrate, indicating that its electricity consumption surpasses that of some entire countries.
Alexander Neumueller, the project lead for digital assets at CCAF, remarked on the growing apprehension among environmentalists, financial institutions, and policymakers regarding Bitcoin’s energy consumption and its environmental implications.
Furthermore, the updated tool estimates that only 37.6% of the energy used by Bitcoin miners comes from sustainable sources, a figure that falls short of industry expectations. This aligns with previous CCAF research indicating that the use of renewable energy in Bitcoin mining is not as prevalent as previously suggested.
Neumueller also pointed out that a substantial decline in mining profitability has contributed to a reduction in electricity consumption, despite significant increases in hashrate. He noted that the recent drop in mining revenue per computing power unit has prompted a transition to more efficient hardware, leading to the temporary phasing out of older, less effective technology.
In related news, Finextra has announced its fifth Sustainable Finance Live conference and hackathon, scheduled for November 29. For further details and registration information, visit the event page here.