Skip to content

Bitcoin projected to become first monetary system to hit net zero emissions by 2024

Bitcoin projected to become first monetary system to hit net zero emissions in December 2024

Bitcoin (BTC) continues to receive criticism regarding its carbon footprint impact as the asset records significant adoption in different jurisdictions. However, the situation might be changing, especially with mining operators increasingly opting for renewable sources of energy in a bid to reduce carbon emissions. 

In particular, Bitcoin is reportedly set to achieve a net zero emission by December 2024, becoming the first monetary system to attain the feat, a new study by BatCoinz indicates

According to the study, the Bitcoin network currently has 62.4% zero emissions by factoring in carbon-negative mining. By March 2023, the activity is expected to have 72.7% zero emissions based on newly announced carbon-negative projects. 

Bitcoin net zero emission trendline chart. Source: Bat Coinz

Under the methodology, the researchers calculated the amount of Bitcoin energy emanating from positive carbon sources and then derived the positive carbon quantity. Additionally, the researchers reverse-engineered to calculate how much methane would need to be removed from the air through combustion to counter-balance the negative carbon quantity. 

Bitcoin’s road to carbon neutral 

The study’s conclusion is based on the use of flared gas to power Bitcoin mining which has been growing by 8.3 MW per month since May 2021.

“We anticipate that Bitcoin mining using vented methane as power will initially grow at only 83% of the growth rate of flared gas mining (6.9 MW/month). Based on this more modest growth rate, we forecast that the Bitcoin network will become carbon neutral in Q4, 2024 fully,” the study said. 

Furthermore, the analysis acknowledged that the hash rate would likely increase alongside energy consumption with Bitcoin’s growth. However, the study pointed out that renewable network usage and miner efficiency are also rising and will offer a counter-balance to the hash rate. 

Bitcoin carbon footprint criticism 

In general, Bitcoin’s carbon footprint has come under scrutiny from different jurisdictions, with the topic becoming a regulatory focus point. For instance, the White House commissioned a study to determine Bitcoin and crypto power consumption to influence the country’s regulatory policy. 

At the same time, different mining operators have increasingly turned to renewable sources to curb their carbon footprint impact.

In this line, as reported by Finbold on August 9, electricity demand by Bitcoin has dropped 21% since the start of the year. Notably, the drop coincided with the ongoing crypto market meltdown. 

However, it will be interesting to monitor how Bitcoin’s net zero emissions influence the regulatory aspect. This comes as jurisdictions like New York outlawed establishing new proof-of-work (PoW) mining activities.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.