HOW BITCOIN MINERS CONTRIBUTE
Bitcoin miners are harnessing new technologies to tap into previously unused and wasted energy sources, such as flaring, excess methane, and surplus grid power, for Bitcoin mining.
Additionally, they are contributing to the stability of the power grid by providing a flexible load that can be adjusted based on grid demand. This not only optimizes energy consumption but also aids in balancing supply and demand, reducing the need for traditional energy wastage methods and supporting a more sustainable energy ecosystem.
WHY BITCOIN
Bitcoin, with its fixed supply cap of 21 million, stands as the hardest form of money ever created. As a multifaceted digital asset, it serves as a commodity, property, and foundational layer of digital money.
With its capacity to provide banking services to the 1.5 billion people currently without access to traditional banking and its proven track record as a store of value over four years, Bitcoin offers unparalleled economic empowerment to billions around the world.
BITCOIN MINING BENEFITS
Bitcoin Mining AND OIL DRILLING
In oil fields, natural gas, a byproduct of oil extraction, is often released into the atmosphere as methane. Bitcoin mining offers an innovative solution to this problem by using this excess natural gas to power mining operations.
Bitcoin Mining and Grid Stability
Bitcoin mining can play a pivotal role in enhancing grid stability. By acting as a controllable load option, mining operations can be ramped up during times of excess electricity generation and dialled down during peak demand periods.
Bitcoin Mining AND BIOGAS
Similar to oil fields, landfills emit methane as organic waste decomposes. This gas can be captured and used as a power source for Bitcoin mining operations. By doing so, miners can reduce methane emissions, while generating economic value from waste.
Research and Innovation
The energy-intensive demands of Bitcoin mining drive ongoing research and innovation in computing, silicon chip technology, and energy efficiency, fostering greater sustainability. Miners are incentivized to find the most cost-effective and efficient energy sources, alongside the most powerful computing solutions, to maximize profitability.
COMMON MISCONCEPTIONS ABOUT BITCOIN MINING
GREEN ENERGY
Bitcoin mining is powered by a higher mix of sustainable energy than any major country or industry.
SUSTAINABLE
58.5% of Bitcoin Mining energy is from sustainable sources.
TECHNOLOGY
Bitcoin Mining is technology intensive. It has become 5,814% more efficient over the last 8 years.
CONSUMPTION
Global Bitcoin Mining consumes just 0.14% of the world’s energy production.
BITCOIN MINING ENERGY USAGE VS COUNTRIES
BITCOIN MINING VS COUNTRIES SUSTAINABLE/RENEWABLE USAGE (% of TWh)
Q4 2021 Data
- BITCOIN MEMBER COUNCIL MEMBER DATA 66.1%
- GLOBAL BTC MINING 58.5%
- GERMANY 48.5%
- IRAN 33.7%
- USA 31.4%
- AUSTRALIA 29%
- CANADA 22.5%
- SOUTH KOREA 21.7%
- WORLD 21.7%
- CHINA 16.4%
- JAPAN 16.3%
- INDIA 12.6%
- BRAZIL 2.3%
BITCOIN MINING ENERGY USAGE VS INDUSTRIES
ENERGY USAGE OF BITCOIN MINING VS OTHER INDUSTRIES (TWh)
Q4 2021 Data
GLOBAL BITCOIN MINING (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 0.142%
TOTAL ENERGY GENERATED WORLDWIDE (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 100%
RESIDENTIAL BUILDINGS (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 17.11%
ROAD VEHICLES (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 9.97%
NON-RESIDENTIAL BUILDINGS (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 6.22%
ROAD FREIGHT VEHICLES (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 5.20%
MILITARY-INDUSTRIAL COMPLEX (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 4.32%
AIR CONDITIONING - USA (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 4.06%
CONSTRUCTION (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 3.77%
FINANCE & INSURANCE (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 3.19%
SHIPPING (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 2.63%
AVIATION (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 2.61%
HEALTH CARE (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 2.40%
APPLICANCES (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 1.93%
GOLD MINING (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 0.369%
GLOBAL BITCOIN MINING (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 0.142%
COMPUTER GAMES (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 0.138%
HOLIDAY LIGHTS (TWh)
- % OF TOTAL ENERGY GENERATED WORLDWIDE 0.130%
Sources: https://www.eia.gov/outlooks/ieo/pdf/transportation.pdf
https://academic.oup.com/eurpub/article/30/Supplement_5/ckaa165.843/5914601
https://hassmccook.medium.com/comparing-bitcoins-environmental-impact-f56b18014f64
https://bitcoinmagazine.com/business/introducing-cbei-a-new-way-to-measure-bitcoin-network-electrical-consumption
https://bitcoinminingcouncil.com/wp-content/uploads/2022/01/2022.01.18-BMC-Q4-2021.pdf
WORLDWIDE INFLATION
The annual rate of inflation worldwide, as measured by the consumer price index (CPI), accelerated to 9.2 % in March 2022, up from 7.5 per cent in February 2022, 6.8 % in January 2022 and 6.4 % in December 2021.
%
WORLDWIDE INFLATION RATE
RISING COSTS AND UNCERTAIN TIMES
From 1 July 2022, the DMO prices in New South Wales, south-east Queensland and South Australia will increase for households (between 1.7% and 8.2% above inflation) and small businesses (0.2% and 13.5% above inflation), largely due to significant rises in wholesale electricity costs over the past year.
%
MINIMUM INCREASE IN ENERGY COSTS FOR HOUSEHOLDS ABOVE INFLATION
%
MAXIMUM INCREASE IN ENERGY COSTS FOR HOUSEHOLDS ABOVE INFLATION
%
MINIMUM INCREASE IN ENERGY COSTS FOR BUSINESSES ABOVE INFLATION
%