Environmental, Social and Governance (ESG) analyst Daniel Batten said Tuesday that the Bitcoin network’s computing backbone now uses 52.6% sustainable energy and Batten and on-chain analyst Willy Woo created the Dynamic Bitcoin ESG Charts to show the protocol’s progress.
Contrary to Cambridge University data, analysts say bitcoin mining uses 52.6% sustainable energy
There has been a great deal of discussion recently about the environmental impact of bitcoin mining; on March 7, 2023, ESG analystsDaniel Battentweeted about a new ESG charthe helped design, Willy Woowhich shows that Bitcoin now uses 52.6% sustainable energy. He also highlights total emissions, emissions per dollar, and emissions intensity.
Battenshared a sneak preview of the chartand noted that the data is dynamically updated. The analyst also noted
that information on methodology and charts will be available soonESG analyst Daniel Batten’s dynamic bitcoin ESG chart has been used by many
including Democratic Senator Elizabeth Warren of Massachusetts published at a time when U.S. politicians have expressed concerns about the bitcoin mining business.
Senators Ed Markey (D-MA), Jeff Berkley (D-OR), and Jared Huffman (D-CA) have introduced legislation that would mandate an “interagency study of the environmental and energy impacts of crypto asset mining.” However, politicians and media publications have beenaccusedof usingquestionable methodologies and datato assess the environmental impact of bitcoin.
For example, the blog Digieconomist, run by Alex de Vries, an employee of the Dutch Central Bank, has been called a“conflict of interest”because of its relationship with the bank. Nevertheless, several environmental activists and politicians have cited de Vries’ work. The preview of Batten’s chart is more than just a fancy display, as the ESG analyst explains its findings and methodology in a recenteditorialpublished on February 19, 2023.
In it, we discuss the Bitcoin Mining Council report and astudyby the University of Cambridge. Data from the Cambridge Center for Alternative Finance (CCAF) is regularly cited by politicians and the media on Bitcoin and environmental issues, and the findings in Batten’s article show that 52.6% of the energy used for Bitcoin mining is sustainable. This ESG analyst also outlines his methodologyon his websiteand discusses the limitations of the CCAF model.
According to Batten’s research, the researcher’s “overall zero-emission energy figure is 7.2% lower than the BMC data” but “significantly higher than the September 2022 CCAF report.” Furthermore, Batten was able to “almost exactly replicate” the CCAF methodology, which resulted in 37% sustainable energy, and then factor in the limitations of the CCAF report to get the true numbers.
Batten claims that his model is more realistic until CCAF considers off-grid and flare gas mining.” Between September 2022 and June 2023, the Bitcoin network is expected to run on +4.5% more zero-emission power,” the report states. Additionally, the report noted that while some critics have argued that Bitcoin is dependent on the grid, which is primarily powered by coal, Batten and CCAF data do not support the coal hypothesis.
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