Bitcoin mining—which has a massive carbon footprint—is facing more and more criticism for its negative effects on the environment. This activity happens to consume a staggering amount of energy. In reality, it consumes more electricity than most countries and is a major driver of carbon pollution.

The Environmental Cost of Bitcoin

Recent studies have shown the enormous environmental cost of Bitcoin mining. In fact, Bitcoin mining is responsible for as much as five times the carbon pollution of other currencies combined. A significant portion of the electricity powering major crypto mines in the United States, approximately 85%, comes from dirty fuels. This continued reliance on fossil fuels deepens the already substantial carbon footprint of cryptocurrency.

"We estimated that 1.9 million Americans were exposed to ≥0.1 μg/m3 of additional PM2.5 pollution from Bitcoin mines, which were often hundreds of miles away from communities they affected." - Nature Communications study authors

One study published in the journal Nature Communications highlights the impact of dirty fuels used in crypto mines in the United States. The research conservatively estimates over 200 million Americans were affected by higher pollution levels because of the Bitcoin mining facilities.

Renewable Energy Adoption

Though met with skepticism, the crypto industry is starting to dip its toes into the waters of cleaner energy consumption. Today, an estimated 42.6% of Bitcoin mining uses renewable energy sources such as wind power and hydropower. This is a big step towards freeing the industry’s future from the shackles of fossil fuels.

These are the first steps the industry should take to move toward the use of cleaner, renewable energy sources. Despite these challenges, these efforts are an important signal of a growing recognition of the need for sustainable practices within the cryptocurrency sector.

Sustainable Solutions and Future Prospects

Business has moved beyond the idea that companies should not invest in sustainable solutions. In October, Soluna announced that it had purchased 60 acres of land in Texas to create its own facilities. They already have plans to build a green data center powered by a nearby wind farm. This collaborative effort serves as an example of what’s possible when renewable energy is adopted by the crypto mining industry.

Through this project we’ve seen just how far the potential for innovation can reach within the crypto industry. Finally, it demonstrates that the biggest polluters in the world can cut their harmful environmental impact by making strategic investments and working with stakeholders in renewable energy infrastructure.