The energy consumed by Bitcoin mining and its effects on the environment is one of the factors that did not play out in BTC’s favor in the past. Due to environmental concerns caused by Bitcoin mining, Tesla reversed its initiative to accept BTC as payment for its vehicles. This adversely affected the price of the flagship crypto asset and left many to wonder about the environment.
However, to the delight of BTC enthusiasts, this problem may be solved to a great extent, although it may take some time.
The New York Digital Investment Group (NYDIG) has conducted a study. According to the study, the energy consumed by Bitcoin mining will reduce to nearly 0.4% over the next ten years.
Such an achievement can be groundbreaking for the flagship cryptocurrency as it can attract more parties and possibly add to its value. However, this is the result of a study at the moment and the real outcome is yet to be seen.
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Important Details of the NYDIG Study
The information mentioned above is part of a research paper by NYDIG, named “Bitcoin Net Zero”. The study was conducted by Nic Carter (partner at Castle Island Venture) and Ross Stevens (NYDIG founder).
It was published this month and revealed that BTC’s global electricity consumption and carbon emissions will decrease in the coming years. This is likely to occur even if the price of the digital currency surges higher.
According to the study, the energy consumed by Bitcoin mining will not be more than 0.4% in the year 2030.
The paper also discusses:
- Changes in carbon emissions in the coming years
- Mining difficulties
- Energy consumption
Here is what the research states regarding Bitcoin’s global energy consumption considering a surge in its price.
“Even in our most aggressive, high price, scenario, in which Bitcoin reaches $10 trillion by 2030, its emissions amount to only 0.9 percent of the world’s total, and its energy outlay is just 0.4 percent of the global total.”
The research paper used the BTC mining-based data from 2020 and predicted its growth in the future.
According to data from last year, Bitcoin:
- Produced 33 million tonnes of carbon dioxide emissions
- Consumed 62 terawatt-hours (TWh) of electricity
Cambridge University also conducted research and revealed that even though the energy consumed by the BTC network is quite high, it consumes less electricity than all the refrigerators in the USA combined.
The report by the NYDIG concluded by stating:
“Over the longer term, the intensity of Bitcoin’s carbon emissions (and with it Bitcoin’s absolute carbon emissions) will decline, as the development of renewables continues and countries strive to decarbonize their electricity grids.”
How Can this Impact the Flagship Crypto Asset?
The effects of BTC mining on the environment have been a major concern for many enthusiasts, especially since Elon Musk voiced his concerns as well.
Soon after Tesla’s changed stance towards BTC, El Salvador announced to adopt it as a legal tender. The concerns of how it would impact the environment were once again ignited. However, El Salvador took the initiative to construct a volcano-powered mining facility.
Innovative ideas such as this are expected to make a difference in how mining operations will affect the environment in the future. However, will Tesla and other companies change their stance towards BTC payments due to this? That is yet to be seen in real life.
There is still plenty of work to be done and numerous factors to consider. However, NYDIG’s research seems quite convincing that the energy consumption and carbon emissions will significantly reduce over the next decade. At the moment, BTC enthusiasts can only speculate how it will affect the price of the flagship crypto asset.
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