The International Monetary Fund (IMF) has raised the alarm during negotiations about a financial relief plan over Pakistan’s decision to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers.
In a move aimed at attracting bitcoin miners, blockchain companies, and AI firms, Pakistan has diverted a significant portion of its energy supply for the project. IMF expressed concerns over the country’s chronic energy shortages, questioning the justification of the project.
The incident highlights a broader global issue, though, as many critics claim that Bitcoin mining simply isn’t sustainable anymore from an energy perspective. These accusations aren’t new, since BTC mining has been facing them since its inception in 2009. The environmental impact of ever-increasing mining operations is meeting a fierce response from various groups, and the question of the sustainability of blockchain and Bitcoin mining in 2025 is becoming a hot topic.
Understanding Bitcoin Mining and Its Environmental Footprint
Bitcoin mining is the process of validating transactions and securing the Bitcoin network through a consensus mechanism known as Proof-of-Work (PoW). To achieve this, miners use powerful computers known as mining rigs that are both expensive and energy-hungry. It is estimated that Bitcoin mining uses between 155 TWh per year to 172 TWh of electricity per year, which is comparable to the entire country of Poland.
To make things even worse, the carbon footprint of mining increased dramatically in 2021, when China banned it completely. Mining operations have been relocated mostly to Kazakhstan and the United States, reducing the share of renewable energy from 41.6% to just 25.1%.
How to Mine Bitcoin Sustainably in 2025
The sustainability of Bitcoin mining in 2025 is not just a concern. Instead, it has become a strategic issue for all miners, as both the energy policies and regulations have shifted.
The use of renewable energy, mostly driven by the cost of energy, has increased dramatically from its low point in 2021 and is now at almost 55%. More than half of the energy coming from renewable sources is a significant milestone and a step in the right direction that bodes well for the future of Bitcoin mining.
Another important factor is technological advancement. With new crypto mining apps vastly increasing the efficiency of the process, it is possible to dramatically reduce the energy consumption. ASIC rigs are also becoming more efficient and are able to produce more computational power with less energy. ASICs in 2024–2025 consume less than 20 joules per terahash, compared to over 80 J/TH just a few years ago. Some models can achieve 12 joules per terahash, making them very profitable and sustainable.
Regulatory Developments
In recent years, we have witnessed a massive regulatory effort to push Bitcoin mining to more sustainable grounds. Since the China ban in 2021, the United States has become a major mining hub, prompting the government to amend its regulations. New rules include mandatory energy disclosure, clean energy credits, and grid balancing programs.
The EU passed the Markets in Crypto-Assets (MiCA) framework, which introduced sustainability benchmarks for all crypto activities, including mining. Miners must meet specific carbon footprint thresholds or face penalties.
Market Demands
Environmental, social, and governance (ESG) investing continues to pressure investors to look carefully into the projects they are supporting, including digital assets, forcing miners to issue sustainability reports and submit to third-party audits.
The approval and subsequent launch of several Bitcoin spot ETFs have brought cryptocurrencies closer to mainstream finance. It has also opened up a possibility for ETF providers to request that coins be sourced from “green-mined” operations, providing an incentive for increasing the sustainability of mining operations.
Criticisms
Some critics argue that Proof-of-Work itself is inherently wasteful, advocating for transitions to Proof-of-Stake (PoS). The Ethereum network has already transitioned to PoS in 2022 and the results are very encouraging.
Another critic’s point is e-waste. Obsolete mining rigs end up in landfills across the globe, adding to the electronic garbage disposal problem. There are several initiatives aiming at hardware recycling and second-life applications for old ASICs and other equipment. Hopefully, these measures will further reduce the environmental impact of Bitcoin mining.
Conclusion
While Bitcoin mining still can’t be labeled fully sustainable, it is undeniable that it is far from its early days when it was portrayed as an environmental villain. Smarter energy use, tighter regulation, and greener technology are all signs of rapid industry evolution toward more efficient and sustainable solutions. Investing in Bitcoin mining in 2025 must take into account all these factors before proceeding.
