Environment, Energy, and Mining

Bitcoin mining uses electricity to secure the network. A better question than 'does it use energy' is: what kind of energy is being used, what would happen to that energy otherwise, and who bears the local costs? Key facts: Bitcoin mining uses about 138 TWh per year, around 0.54% of global electricity. Electricity is usually the biggest mining cost, often 80% or more of operating expenses. Surveyed miners reported about 52% of their energy mix came from renewables plus nuclear. Stranded energy is energy that exists but cannot be used easily, often because it is in the wrong place or the wrong time. Energy is hard to store and expensive to transport, so some power gets wasted. Examples include curtailed renewables (wind or solar the grid cannot take), remote hydro (strong generation far from cities), and unused or flared gas (burned off because there is no pipeline or buyer). Bitcoin mining has a powerful utility here: it can harness stranded energy, capture wasted value, convert it into bitcoin, and transfer that value anywhere.