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Bitcoin Mining Helps Power Grids and Cuts Emissions, Says ESG Analyst

Key Takeaways

  • Bitcoin’s energy use does not scale with transactions, peer-reviewed studies show its resource demand stays stable despite volume;
  • Mining supports renewable grids by flexibly adjusting demand and even uses wasted energy, improving grid stability;
  • Bitcoin uses over 50% renewable energy, helps reduce methane emissions, and unlocks new access to clean power, such as in Africa.

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Bitcoin Mining Helps Power Grids and Cuts Emissions, Says ESG Analyst

An ESG specialist, Daniel Batten, shared a post on X on December 27 that addressed several common misconceptions about Bitcoin BTC $70,733.89 mining's energy use.

One misconception is that Bitcoin uses excessive resources per transaction, including energy, water, and electronic waste. Batten clarified that four peer-reviewed papers show resource demands do not rise with transaction volume.

Another belief is that Bitcoin mining harms power grids. In contrast, Batten noted that mining supports grid stability by adjusting demand, particularly in regions that rely heavily on renewable energy, such as Texas.

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Some assert that Bitcoin's carbon footprint is high. Batten argued this is misleading because mining has no direct emissions, only those from electricity generation (scope‑2 emissions).

He emphasized that Bitcoin is unique in having reliable third‑party data showing it has surpassed a 50% renewable energy usage rate.

Critics often argued that proof‑of‑stake Ethereum ETH $2,095.56 is more environmentally friendly than proof‑of‑work Bitcoin. Batten stressed that Bitcoin mining can help reduce methane emissions, support grid stability, expand renewable capacity, and make use of wasted energy.

There is a claim that renewable energy used by mining is taken from others. Batten explained that Bitcoin mining has enabled access to new renewable energy sources.

He cited the Gridless project in Africa, which provides sustainable energy to about 28,000 people.

Finally, Batten said mining helps avoid energy waste by utilizing more than 90% of solar and wind output in some studies. He added that labeling energy use as "waste" is a subjective judgment that depends on whether it benefits humanity.

Meanwhile, Canaan and SynVista Energy are developing an AI-driven platform linking renewable power with Bitcoin mining. What is the goal of the collaboration? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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