A decentralized finance (DeFi) altcoin is outperforming the broader crypto market this week, sparking a 30% surge amid inflation rate cuts. In a new blog post, DeFi protocol Curve Finance (CRV) says that for its fourth birthday, it is undergoing one of the most significant emissions reductions in its history, one that ends all emissions […]
The post DeFi Altcoin Curve (CRV) Outpaces Crypto Market and Surges 30% This Week Amid Massive Inflation Rate Cut appeared first on The Daily Hodl.
International Monetary Fund (IMF) economists have warned of the environmental impact of crypto mining and AI data centers, which are projected to increase global electricity consumption to 3.5% by 2027, leading to higher carbon emissions. Proposing a targeted electricity tax, the authors estimate a potential reduction in emissions by 100 million tons annually, while generating […]
Bitcoin's hash rate has continued to increase and yet its emissions intensity has been trending down, contrary to most other industries, Bloomberg analyst Jamie Coutts explained.
While the Bitcoin network has continued to expand over the years, the Bitcoin mining industry has yet to see a comparable increase in carbon footprint — an achievement that a Bloomberg analyst argues “few industries can claim.”
This, in turn, could drive the next wave of institutional investment.
On Sept. 20, Bloomberg crypto market analyst Jamie Coutts cited data showing that the sustainable energy mix for Bitcoin has continued to rise since 2021, and is now over 50%. This has led to the growth of emissions slowing relative to the network’s continued expansion.
“Bitcoin as a global monetary network is scaling while its carbon impact declines. Few industries can claim this achievement”
He said that the evolving relationship between Bitcoin network growth and the global push to transition from fossil fuels could “catalyze a wave of institutional and even sovereign investment capital.”
The analyst added that as energy constitutes well over 50% of mining's operational costs:
“The incentive to acquire the cheapest energy sources is contributing to the network's rising hash rate while simultaneously reducing the industry's emissions or carbon intensity.”
Bottom Line: If the network scales to hundreds of millions of users, the impact on global carbon emissions will be minimal, and the technology itself is likely to play a pivotal role in the transition away from fossil fuels
— Jamie Coutts CMT (@Jamie1Coutts) September 20, 2023
Energy emissions refer to the greenhouse gases and air pollutants emitted as byproducts from different energy sources and activities whereas carbon intensity measures how clean the electricity is.
On Sept. 18, Cointelegraph reported that the next generation of Bitcoin miners was focusing on alternative energy sources for efficiency.
However, the percentage of sustainable energy used in Bitcoin mining has been a point of debate, as Cambridge University's model (which hasn't been updated since January 2022) stated that mining from sustainable energy sources is just 37.6%.
Climate technology venture investor and activist Daniel Batten, however, argues that this is actually above 50%.
Google is learning pic.twitter.com/xt8flWKN63
— Daniel Batten (@DSBatten) September 19, 2023
He said that the Cambridge figures were out because off-grid mining and methane mitigation are currently not included in its calculations.
Related: Bitcoin mining is becoming more environmentally friendly
Earlier this year, Batten reported that Bitcoin mining emissions intensity had fallen to its lowest-ever level.
Moreover, he predicted that the Bitcoin network will become carbon neutral by December 2024.
“By 2030, the Bitcoin network is projected to mitigate 10x more emissions from the atmosphere than it produces, an astonishing achievement,” claimed Batten.
Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises
The Denver-based gas-to-bitcoin infrastructure company Crusoe Energy announced on Wednesday that it acquired the operating assets of Great American Mining (GAM). The acquisition gives Crusoe over 10 megawatts (MW) of mining capacity and 4,000 ASIC mining rigs. Digital Flare Mitigation Firm Crusoe Energy Acquires Great American Mining’s Assets, Acquisition Adds Approximately 9% to Company’s Capacity […]
According to a recent report published by the Cambridge Centre for Alternative Finance (CCAF), bitcoin mining worldwide accounts for around 0.10% of global greenhouse gas (GHG) emissions or 48.35 million tons of carbon dioxide per annum. Moreover, CCAF’s report details that “Bitcoin’s environmental footprint is more nuanced and complex” and because of complexity issues it […]
A crypto mining data center in the state of South Australia will be running mainly on solar-generated electricity, a media report reveals. The coin minting facility has been set up in a region known for its energy-hungry iron ore extraction and steel production. Bitcoin Farm to Mine Cryptocurrency on Solar and Excess Energy in South […]
Exxon Mobil Corporation is reportedly participating in a pilot program that leverages excess natural gas to power crypto mining machines, according to a recent report quoting people familiar with the matter. The report states that the oil giant is partnered with the firm Crusoe Energy Systems, and the pilot is purportedly taking place in North […]
Contrary to some expectations, Beijing’s crackdown on the crypto mining industry has increased Bitcoin’s carbon emissions, researchers have alleged. Leaving China, miners also left behind its eco-friendly hydropower and are increasingly relying on energy generated by fossil fuels, they claim. Bitcoin Mining Allegedly Less Green Since Miners’ Exodus From China Cryptocurrency mining has become a […]
During the last year, Bitcoin — the cryptocurrency network that leverages proof-of-work (PoW) to process transactions and secure the protocol — has received a lot of criticism about its environmental impact. This week, the cryptocurrency firm Coinshares published a report that shows talking points condemning the network’s electrical consumption have been greatly exaggerated. According to […]
Despite the large burn value, the network is still inflationary until its PoS transition scheduled for Q2 or Q3.
According to blockchain data from Nansen Analytics on Tuesday, over $1.096 billion worth of Ethereum (ETH) has been burned in the past month. With the introduction of the EIP-1559 last August, a portion of fees is taken out of circulation for every transaction that occurs on the Ethereum blockchain. While sending and receiving ETH does not cost much, higher-level tasks, such as minting nonfungible tokens, or NFTs, via smart contracts, cost far more gas.
In January, the total volume of NFT transactions on OpenSea hit an all-time high of $3.5 billion. It currently ranks No.1 on a burn leaderboard compiled by Ultra Sound Money, with 65,778 ETH ($181.7 million) burned in the past 30 days. In second and third place were token burns from Ethereum transactions and factivity on decentralized exchange Uniswap (UNI), numbering 35,696 ETH ($98.6 million) and 24,223 ETH ($66.9 million), respectively.
However, Ethereum is still an inflationary blockchain network; the current issuance of 5.4 million ETH per year surpasses 3.5 million ETH burned. The supply of ETH will peak only after the removal of its proof-of-work mechanism via its transition to proof-of-stake, or PoS.
Once that happens, the total amount of new emissions will be less than that of token burns, resulting in a net deflationary network. The PoS transition, dubbed "the merge," will occur in the second or third quarter of this year. Before that, however, the network's total hash rate has still managed to reach a new all-time high. The Ethereum Foundation recently ditched the Eth 2.0 name in its rebrand. It is now called the consensus layer.
