Does Bitcoin Have an Energy Problem

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Does Bitcoin Have an Energy Problem? 11 decarbonization of mining and has laid out a path forward for market participants to join. While the Accord’s goals are lofty, its launch is certainly evidence that the industry is aware of its impact on the environment. Given the partnership with Bitcoin miners themselves, it is clearly not lost on anyone that mining will need to continue its move towards more sustainable energy production practices. From an investment perspective, mining revenue reached an all-time high in March 2021 due to rising total fees as well as the bitcoin price (see chart below). Increasing revenue could lead to a couple of things. The first is more external industry investment, which in turn leads to improvements across all facets of Bitcoin mining. Second, increased miner income means miners are flush with cash reserves which could be utilized to improve miner efficiencies, grow footprint or expand clean energy use capabilities. From a policy perspective, policy makers will act accordingly to make the energy mix cleaner, if they so choose. By way of example, a Bitcoin mining operation in Missoula, Montana was shut down at the request of the county commissioner since the miners could not meet a request to use a 100% renewable energy mix. Implementation of strong, sweeping policies in cooperation with industry participants would invariably lead to cleaner Bitcoin mining.

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