Contact Us

+350 20079000 info@hassans.gi

This data will only be used by Hassans for processing your query and for no other purpose. View our privacy policy
| 1 minute read

Bitcoin's environmental credentials

Elon Musk's tweet about Tesla suspending the acceptance of Bitcoin as a means of payment for Tesla motor vehicles has sparked a great debate about Bitcoin's environmental credentials.

Whilst there has been a lot of media coverage about the energy consumption of miners who validate Bitcoin transaction blocks, one needs to 'lift the hood' to delve deeper in understanding the sources of the energy that is consumed by Bitcoin miners.

A 2019 report from the International Energy Agency indicated that Bitcoin mining facilities tend to be “concentrated in remote areas of China with rich hydro or wind resources (cheap electricity).” A further 2020 study by the University of Cambridge suggested that 76% of cryptocurrency miners use electricity from renewable energy sources.

An interesting white paper published by ARK Invest and Square argues that "the Bitcoin network could function as a unique energy buyer that could enable society to deploy substantially more solar and wind generation capacity".

Further research indicates that Bitcoin miners operate around the fringes of energy grids being forced to seek out cheap renewable sources of electricity in order to remain profitable, or scavenge energy which would otherwise be wasted.

In addition, Bitcoin proponents also point to the transparency of energy consumption by the Bitcoin mining network and the fact that it is impossible to audit the energy consumption of the entire infrastructure supporting the global conventional financial system.

Whilst the debate about the source of Bitcoin mining energy consumption will no doubt continue to be ventilated, the fact remains that as a global community we need to take a step back and honestly assess our societal and individual choices that have an impact on the environment and strike the right pragmatic balance.



Image credit: to Blue and Green Tomorrow

Mining bitcoin uses a whole lot of energy, but whether that’s from fossil fuels or renewable energy is up for debate. www.marketwatch.com/...

Redefining investment structures and Gibraltar’s PCLP advantage.

Gibraltar has established itself as a dynamic and innovative financial centre, renowned for its robust regulatory framework and its...

Posted on
Read more

Latest Insights

Gibraltar/EU Trade and Mobility Agreement – done

Today is a historic day indeed. In summary, the Gibraltar-EU Trade and Mobility Agreement headlines are as follow. 🔒 Sovereignty...

Posted on
Read more

Political Agreement Reached on Gibraltar’s Future Relationship with the EU

Today marks a major milestone in Gibraltar’s post-Brexit journey. On 11 June 2025, the United Kingdom, the European Union, Spain, and...

Posted on
Read more

Habemus Deal – Gibraltar (and Trent Alexander-Arnold) Moving to Europe

Following May's papal election and Trent Alexander-Arnold's move to Real Madrid, we now finally have “white smoke” in a deal for...

Posted on
Read more