Key Highlights
- Bitcoin’s energy use depends on mining competition, not transactions, and over 50% now comes from renewable sources.
- Mining can stabilize power grids by using surplus energy and shutting down during peak demand, improving renewable efficiency.
- Mining turns stranded methane from landfills and oilfields into usable energy, creating both economic and environmental benefits.
Bitcoin’s energy use has been criticized for years, often portrayed as wasteful, harmful to the environment, and damaging to power systems.
Daniel Batten, an environmental, social, and governance (ESG) analyst, said in a recent X thread that nine common criticisms of Bitcoin mining are challenged by peer-reviewed studies and electricity grid data, noting that much of the debate stems from outdated assumptions and misunderstandings.
“Every nascent disruptive technology is accompanied by claims based on lack of understanding, lack of data, and a fear of the unknown,” Batten said. “As research improves and data becomes more transparent, a clearer picture emerges.”
In 2025, the Dow Jones company criticized Harvard for investing in Bitcoin, calling it a “fake currency” and an environmental hazard, while Bloomberg claimed it consumes electricity meant for the world’s poor.
Energy use and grid impact
Many people think Bitcoin consumes more energy as transactions rise. That’s not true. Cambridge University’s 2025 Digital Mining Industry Report shows energy use depends on mining competition and network security, not transaction volume.
Early “per transaction” estimates were overstated and caused confusion. Bitcoin can handle more transactions without using extra electricity.
Another common claim is that Bitcoin has a huge carbon footprint. Batten says this is misleading. Mining now uses 52.4% renewable energy and produces only indirect emissions from electricity. Cambridge estimates emissions at 39.8 MtCO₂e. Its carbon intensity is improving faster than the banking sector it replaces.
Mining and the power grid
Another common criticism is that Bitcoin destabilizes power grids. Evidence shows the opposite. Mining operations can quickly shut down during peak demand and restart when excess power is available. “Bitcoin mining stabilizes grids due to its flexible, modular, and interruptible nature,” he said.
This has been observed in places like Texas, where solar and wind output fluctuates daily. Mining sucks up excess energy that would otherwise be wasted, making grids more efficient. In other words, Bitcoin miners play the role of flexible and responsive consumers of energy that take pressure off the grid and make better use of renewable energy.
Costs, emissions, and energy sources
Many believe mining drives up electricity costs. Data doesn’t support this. In Texas, where mining is concentrated, household prices rose at the same rate as the U.S. average.
Mining can actually help reduce costs. It uses surplus renewable energy, lowers grid strain, and reduces the need for new power plants. For example, in Norway, Bitcoin mining kept electricity prices 20% lower, and in Kenya, it cut costs from 35¢ to 25¢ per kWh.
Critics also say mining takes renewable energy from others or could be used “better.” Batten disagrees. Mining powers down when electricity prices spike, so it doesn’t compete with other users. It often expands renewable energy access. For example, Gridless in Africa delivers electricity to 28,000 people, and in Ethiopia, mining accelerated new transmission lines. Much of the energy miners use is otherwise stranded.
Methane use, energy access, and social benefits
Some claim Bitcoin isn’t needed to capture methane from landfills or oilfields. Batten says this is technically true but economically impractical. Mining has a strong incentive to use cheap, even remote, electricity, turning stranded methane into usable energy. Nuno Barbosa, CEO of Unicarbo, confirmed that many landfills have no other way to sell their power.
Bitcoin mining supports social programs and local communities by putting otherwise wasted energy to use. It also improves renewable energy adoption in rural regions, creating practical environmental and economic benefits.
Energy waste and environmental value
Bitcoin is often accused of “wasting energy.” Studies show the opposite. Mining absorbs excess solar and wind power, reducing microgrid costs and improving efficiency. Energy is only wasted if it produces no benefit.
Already, Bitcoin mining stands out as an industry permitting 19 documented different social and environmental benefits, from the support of renewables to methane mitigation to grid stabilization.
Batten also questioned the idea that proof-of-stake is automatically better than proof-of-work. A reduction in energy usage doesn’t necessarily equate to a reduction in environmental impact. The proof-of-work system supports methane reduction efforts, the development of renewable resources, and a flexible power grid – all of which are made possible by energy-intensive architecture.
Conclusion: Look at the data
One area that Daniel Batten highlights is that any discussion about the environmental impact of Bitcoin must be based on up-to-date information rather than out-of-date assumptions.
Criticisms—from energy myths and grid instability to carbon footprint, methane use, and alleged energy waste—do not hold up against evidence. Bitcoin mining shows real benefits for renewable energy, emissions reduction, and social programs.
“Wasting energy’ is not an objective assessment, but a value judgment,” Batten said. The debate should focus on how technology and energy systems evolve, not fear or old data.
Also Read: Bitcoin Bulls Busted on Their Predictions as BTC Closes 2025 at $87K
