TL; DR Breakdown
- Tom Seyer likens Bitcoin mining to an environmental disaster.
- He says that Bitcoin miners can shift to a renewable source of energy.
- Cambridge university report says 39% of crypto miners use renewable energy.
Bitcoin is no doubt the biggest and most performing digital asset across the crypto market as of today. The digital asset, developed in 2009 by pseudonymous founder, Satoshi Nakamoto has witnessed a rise of about 700% in value. But despite the asset providing traders and investors alike with chances of taking in profits, some individuals are still opposed to the asset. On such people is a billionaire and environmental advocate, Tom Seyer. According to Seyer, Bitcoin can be likened to an environmental disaster.
Bitcoin mining electricity consumption
In an interview with Yahoo Finance, Seyer mentioned that Bitcoin consumes a huge amount of electricity during its mining process. He pointed out that combined with the massive amount of electricity it uses, it emits dangerous gases into the environment. However, he opined that his views about damaging the asset could change if Bitcoin miners use a more environmentally friendly mining method.
Seyer stated that he believes that Bitcoin can use clean electricity, and this way, it does not damage the environment. Seyer also said that he had been approached with an investment opportunity in a Bitcoin mining operation. He told the Bitcoin mining operation was close to a coal plant, and he was brutally honest about his stance. He said that the idea was to create a cheap Bitcoin mining rig using coal, and it was a vast profit-taking opportunity, but it signaled a disaster to the environment.
Crypto consumes high renewable energy
Seyer’s stance is that should Bitcoin miners begin to use renewable and environmentally friendly mining methods. It would be a good source of investment. However, the idea is not something that has been put to practice before. As per a recent Cambridge University survey, only 39% of the energy burned from mining crypto uses renewable energy sources. This means that Bitcoin’s total amount of energy in a year translates to burning 54 billion pounds of coal.
However, another report from Coinshares paints an entirely different picture. According to Coinshares, renewable energy amounts to 77.6% of the total energy consumed in mining crypto. One thing to note is that Coinshares is also a participant in the crypto market and would reduce the sector’s impact on the environment.
Another example is the report of the Bitcoin mining council, which places the figure at 56%. The council, which was formed after several outcries on the impacts of Bitcoin mining on the environment. When it carried out its survey, it only considered about 32% of the global hashrate.