Bitcoin: A Solution to the Climate Crisis?

Imagine being told that a technology consuming as much electricity as a country of 45 million people could actually help solve the climate crisis. Counterintuitive? Yet this is the thesis increasingly defended by researchers, energy experts, and even some environmentalists.

Today, the climate crisis and energy transition are at the heart of global concerns. Nearly ten years after the 2015 Paris Agreement, the situation is alarming: the world is not on track to limit warming to 1.5°C. In this context, Bitcoin is often pointed to as a major environmental problem. But stopping at this observation means ignoring a much more nuanced reality.

Bitcoin’s Real Consumption: Putting the Numbers in Perspective

The Bitcoin network consumes about 127-160 TWh per year, roughly 0.5% of global electricity consumption. To put this number in perspective:

• It’s comparable to the consumption of Argentina (45 million inhabitants) or Norway
• It’s less than American clothes dryers (~108 TWh/year)
• It’s about 7 times Google’s consumption (all data centers combined)
• It’s 0.1% of global CO₂ emissions

The “Per Transaction” Comparison Trap

You may have read that a Bitcoin transaction consumes as much as an American household for a month (~1,200 kWh). These figures are technically true — but deeply misleading. Why? Because Bitcoin is not Visa. Bitcoin is a final settlement system that secures a store of value worth over $1.5 trillion — 24/7, without intermediaries.

🎯 The Safe Analogy: Imagine a giant safe that protects $1.5 trillion permanently. You don’t judge its energy cost “per item deposited” — you judge it relative to the value it secures.

An Increasingly Green Energy Mix

Despite its “dirty energy” reputation, Bitcoin mining is greening at a remarkable pace. According to Cambridge University, in 2020, only 39% of miners’ energy came from renewable sources. Today, that figure exceeds 55% — a 16-point increase in five years.

This transformation is driven by several factors:

• 🇨🇦 Migration to green regions: Canada (Quebec), Iceland, and Scandinavia attract miners with their 100% hydroelectric or geothermal electricity
• 🇨🇳 The 2021 Chinese ban: China represented 65% of global hashrate, largely powered by coal. Its ban forced a massive migration to countries with cleaner energy
• 💰 Pure economics: Miners chase the cheapest electricity. Renewables have become the cheapest in many regions
• 🌍 ESG pressure: Publicly traded miners must justify their energy mix to institutional investors

Bitcoin as “Buyer of Last Resort”

Here’s the most powerful argument for Bitcoin mining: its role as an electricity buyer of last resort. Mining has three unique characteristics that make it the ideal partner for renewable energy:

• ⚡ Flexible demand: A miner can turn on or off in seconds
• 🌍 Relocatable demand: Mining can be set up anywhere — in the middle of the desert, on an isolated oil field
• 💵 Profitable demand: Mining generates predictable revenue, enabling funding of otherwise non-viable green energy projects

Flared Gas Monetization

Every year, the oil industry burns about 150 billion m³ of natural gas in the open air. Companies like Crusoe Energy install mining containers directly on extraction sites. The gas that would have been flared powers generators that run ASICs. Crusoe Energy already captures the equivalent of 8 million tons of CO₂ per year.

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Bitcoin vs Banking System: The Real Comparison

When you add up the 600,000+ bank branches, thousands of data centers, millions of daily commutes, and physical gold storage, the global banking system consumes between 2,000 and 4,000 TWh per year — 20 to 30 times more than Bitcoin.

According to analyses by Hass McCook and Galaxy Digital, Bitcoin is 56 times more energy efficient than traditional banking for securing value.

Legitimate Criticisms

It would be dishonest to present only the positive aspects:

• 📊 Absolute consumption remains significant: ~70 TWh still comes from fossil sources
• 🏭 Some miners use coal: Notably in Kazakhstan after the Chinese ban
• 📈 Hashrate growth: If the price rises, consumption could increase
• 🔌 Competition for electricity: In some regions, miners may compete with residents

The Future: Towards 100% Green Mining?

Several converging trends suggest Bitcoin mining will become one of the greenest industries:

• 📉 Falling renewable costs: Solar costs have dropped 90% in 15 years
• 🏛️ ESG regulation: Growing pressure from institutional investors
• 💡 Technological innovation: ASICs are becoming increasingly efficient (15 J/TH in 2025 vs 30 J/TH in 2020)
• 🔥 Waste valorization: Biogas, residual heat, tidal energy…

Some analysts estimate that mining could reach 70-80% renewable energy by 2030.

Conclusion

Bitcoin consumes energy, that’s undeniable. But this consumption can become a tool for energy transition: by monetizing surpluses, funding isolated green projects, transforming waste into resources. Bitcoin mining is neither an ecological disaster nor a miracle solution. It’s a tool — and its impact depends on how we use it.