Cambridge University: Bitcoin Mining Now Uses Over 50% Clean Energy — May Meet Tesla’s Standard

A new report from Cambridge University says that more than half (52.4%) of the energy used to mine Bitcoin now comes from clean, sustainable sources. This is a big increase from 37.6% in 2022.

This number is also higher than the 50% clean energy target Elon Musk said was needed before Tesla would accept Bitcoin again as payment. However, Tesla has not yet said it will start accepting Bitcoin.

The study shows that:

• 9.8% of the clean energy comes from nuclear power.

• 42.6% comes from renewable sources like wind and water power.

• Natural gas is now the top energy source used by miners, replacing coal.

  • Natural gas use rose to 38.2%, up from 25%.

  • Coal use dropped a lot, from 36.6% to just 8.9%.

The study was done by the Cambridge Centre for Alternative Finance. They looked at data from 49 mining companies in 23 countries. These companies do almost half of all the Bitcoin mining in the world.

Here are some more findings from the report:

• Bitcoin mining uses about 0.5% of the world’s electricity.

• Even with this, mining equipment is now 24% more energy efficient than before.

• Most old mining machines are reused or recycled.

• In 2024, Bitcoin mining created 2.3 kilotonnes of electronic waste (about the weight of 150 cars).

• The U.S. is the biggest player, with 75.4% of all mining. Canada comes next with 7.1%.

Electricity costs are a big part of mining, making up more than 80% of expenses. Some miners are also helping power grids by cutting their energy use during high demand.

To make money in new ways, some mining companies are exploring things like:

• Using leftover gas from oil fields.

• Reusing heat from mining machines.

• Expanding into areas like artificial intelligence (AI).

Different Views on Bitcoin Mining and the Environment

Another recent study, led by Harvard and published in Nature Communications, said Bitcoin mining causes air pollution and affects 1.9 million people in the U.S.

But energy expert Daniel Batten strongly disagreed, saying the study was based on bad data and unfair methods. He believes the researchers already made up their minds and then tried to prove Bitcoin was harmful.

Others, including the Digital Assets Research Institute, also criticized the Harvard study, saying it used outdated data and unreliable sources.

The Cambridge team says their report is different. It uses real data from mining companies to give a clearer picture of what’s really happening.

They also say this is just the beginning. More research is needed to understand things like how mining affects jobs, how to reduce methane gas, and how to reuse heat from mining machines.

Will Tesla Accept Bitcoin Again?

In 2021, Elon Musk said Tesla would accept Bitcoin for payments and even bought $1.5 billion worth of Bitcoin. But a few months later, Tesla stopped accepting it because of concerns about the environment — especially how much coal was being used for mining.

Musk said Tesla would start again once Bitcoin mining used at least 50% clean energy and showed signs of improvement. That goal seems to have been reached, but Tesla has not yet made any new announcements.

In a podcast earlier this year, Musk said he still likes Bitcoin and Dogecoin (a joke cryptocurrency), but he hasn’t said whether Tesla will accept Bitcoin again.

Disclaimer: This article is for information only. It’s not financial advice. Always do your own research before investing. The Crypto Basic is not responsible for any financial losses.