Bitcoin’s Technical Foundation and Its Potential for a Decentralized and Environmentally Friendly Future

Abstract

This research examines a systematic analysis of Bitcoin, employing a Coefficient of Variation (CV)approach to gauge its degree of decentralization. Bitcoin, an innovative decentralized digitalcurrency, has received much attention for its potential to revolutionize traditional financialsystems. This study employs the Coefficient of Variation (CV) to acquire insights into the wealthdistribution and concentration among Bitcoin users. This research demonstrates how decentralizedthe network of Bitcoin is. The methodology uses real data on Bitcoin addresses and their holdingsto compute the Coefficient of Variation (CV). This approach provides valuable insights into theongoing discourse surrounding Bitcoin’s decentralization, offering a fresh perspective on how thefixed supply of 21 million Bitcoins may impact wealth distribution. Furthermore, the studyexpands its scope to examine sustainability aspects within Bitcoin mining. It investigates the scopeof using renewable energy sources such as wind, hydroelectric, solar, and geothermal. This indepthexploration assesses the adaptability and potential synergies between these renewable energysources and Bitcoin mining operations. This study examines aspects such as energy efficiency,environmental effect, and economic viability to provide a comprehensive perspective on thepossibility and challenges of merging wind, hydro, solar, and geothermal resources into sustainableBitcoin mining. The study's findings provide useful insights into Bitcoin's future and its potentialimpact on global financial systems and environmental sustainability. This thesis intends to useBitcoin mining from Methane (CH4) flares to contribute to a more resilient and sustainable societywhile promoting positive environmental change.