However, the situation may be changing, particularly if mining companies utilize renewable energy to reduce carbon emissions.
According to a new study by BatCoinz, Bitcoin is on track to reach net zero emission by December 2024, making it the first monetary system to do so.
Based on the study, the Bitcoin network presently has 62.4% zero emissions when carbon-negative mining is considered. As per recently revealed carbon-negative initiatives, the activity is planned to have 72.7% zero emissions by March 2023.
Under the methodology, the researchers estimated the amount of Bitcoin energy emitted by positive carbon sources and then computed the positive carbon quantity. Furthermore, the researchers reverse-engineered to determine how much methane would need to be removed from the air by burning to offset the negative carbon quantity.
Bitcoin’s road to carbon neutral
The conclusion of the study is based on the usage of flared gas to power Bitcoin mining, which has been increasing by 8.3 MW per month since May 2021.
We anticipate that Bitcoin mining powered by vented methane will initially grow at 83% of the rate of flared gas mining (6.9 MW/month). Based on the study, relying on this lower growth rate, the Bitcoin network will be totally carbon neutral in Q4, 2024.
Furthermore, the study highlighted that as Bitcoin grows, the hash rate would most certainly increase along with energy usage. However, the study noted that renewable network utilization and miner efficiency are both increasing and will provide a counter-balance to the hash rate.
Bitcoin carbon footprint criticism
In general, the carbon footprint of Bitcoin has been scrutinized by several governments, with the matter becoming a regulatory emphasis point. The White House, for example, commissioned a research to assess Bitcoin and crypto power use in order to influence the country's regulatory policies.
At the same time, mining companies are rapidly turning to renewable energy to reduce their carbon footprint.
In this line, CoinGabbar reported on August 9 that Bitcoin's power use had reduced 21% since the beginning of the year. Notably, the dip corresponded with the present crypto market catastrophe.
However, it will be fascinating to see how Bitcoin's net zero emissions affect the regulatory aspect. This comes as countries like New York have prohibited the establishment of new proof-of-work (PoW) mining businesses.
Read also: Crypto-friendly Liz Truss Elected As UK’s New Prime Minister
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