Bitcoin Mining Council Says BTC Mining Now Mostly Using Sustainable Energy, but Claims are Questionable: Report

As the Bitcoin hashrate (the amount of computing power securing the world’s largest cryptocurrency network) experiences its worst drop ever, the newly established Bitcoin Mining Council has revealed that global Bitcoin mining is now mainly being powered by “sustainable energy.”

The report from the Mining Council notes that “the members of the BMC and participants in the survey are currently utilizing electricity with a 67% sustainable power mix” — while extrapolating that global Bitcoin mining is currently using 56% sustainable power.

In addition to these developments, Twitter has dropped some non fungible tokens (NFTs) to users while music-streaming service Tidal — now majority-owned by Twitter CEO Jack Dorsey’s Square — has begun to take an interest in NFTs as well.

Adam James from OKEx Insights notes in an update shared with Crowdfund Insider that Bitcoin’s (BTC) hashrate declined significantly as Twitter and Tidal “make NFTs hot again.”

With most of BTC’s hashrate currently on the move, Michael Saylor and the Bitcoin Mining Council have stated that the leading digital currency is mainly being powered by sustainable energy.

James writes in an update that it’s been quite a “testy week” in the blockchain and crypto space. As the Bitcoin hashrate goes through its worst drop in history, the newly launched Bitcoin Mining Council has confirmed that global Bitcoin mining is powered by sustainable energy.

As noted by James, like the BMC, itself, the newly released report has raised concerns such as the survey being focused on BMC members, the “voluntary nature” of the survey, the “failure to define sustainable electricity,” the “neglect of the ongoing mass relocation of mining from China to other countries,” and the “general lack of oversight.”

The report states that the estimated global Bitcoin network “annualized power [is] based on BMC analysis, assumptions, and extrapolation.” Due to the “arguably” weak nature of the statistics supporting the report, critics say that MicroStrategy CEO Michael Saylor and others are “merely trying to … inaccurately [paint a] pretty picture in the interest of their investments in the foremost cryptocurrency.”

James also mentioned in the report published by OKEx Insights that Twitter handed out NFTs to users on June 1, 2021, along with their addition of the NFT marketplace Rarible. The seven unique NFTs, are not for sale. They’re being handed directly to users who may be interacting with the announcement post.

As mentioned in the report from OKEx:

“Despite giving the NFTs to users, Twitter retains the right and title to the artwork — which has drawn some skepticism. Per the social media company’s terms, newfound owners of Twitter’s NFTs are only allowed to display them for personal and noncommercial purposes…. the NFTs may not be used with any product or service that is not a part of Twitter. Violating said rules may result in a $100 fee.”

Twitter’s NFTs have been issued on the Ethereum blockchain.

The report also mentioned that Bitcoin’s hashrate has dropped around 70% from its all-time high in May 2021. The considerable reduction in computing power — which is used to mine new blocks on the BTC blockchain — is the “largest linear decline for the foremost cryptocurrency’s hash rate in history,” the report confirmed.

As stated in the report, one of the main reasons for the dramatic drop in BTC’s hashrate is the crackdown on Bitcoin mining by Chinese authorities. Miners are leaving the country en masse and relocating to other jurisdictions.

The report also noted that the declining BTC  price from its April all-time high has made mining less profitable, but difficulty adjustments will “likely make this just a temporary setback.”

As reported, Morgan Stanley’s Europe Opportunity Fund recently acquired 28,289 shares of Grayscale’s Bitcoin Trust, as indicated in a US Securities and Exchange Commission (SEC) filing. At the time the filing, the GBTC shares were valued at around $1.3 million.

As mentioned in the report:

“The news of Morgan Stanley’s GBTC shares comes after the financial giant permitted a selection of its funds the ability to indirectly gain exposure to the foremost cryptocurrency. GBTC has struggled since BTC and the wider cryptocurrency market peaked earlier this year, … continually hitting new lows amid the market-wide pullback.”

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