Public Digital Commons Briefing

Facts, not hype

Clear Evidence on Bitcoin and Decentralised Technology

Understand the essentials in under five minutes. Learn what decentralised technology and Bitcoin can do for people, where risks are real, and which claims are evidence-backed.

Start With 5 Common Misunderstandings
Updated: 25 February 2026 Audience: Everyone, not just party members
14 cited references Primary sources first No signup required

Evidence Standards

Clear evidence chain, transparent methods, and direct links to sources.

14

Cited sources

6

Official / standards bodies

1

Full Cambridge industry report

0

Hidden fees or paywalls

FCA HMRC EIA ESMA W3C University of Cambridge

What is decentralised technology?

Systems run by many independent operators using open protocols, not a single gatekeeper.

Plain-English definition

A decentralised network spreads control across many participants. A single company does not have a universal “off switch” for the protocol itself. That does not mean “no rules”; it means no single private owner controls the whole system. [R2][R3][R4]

  • Open standards enable interoperability and easier migration. [R6]
  • Federated protocols let many servers interoperate. [R4]
  • Decentralised identifiers are designed to be controlled by their subject. [R5]

Centralised vs decentralised (graphic)

Centralised Decentralised

No single corporate switch-off

If one operator goes down, the full network can still function through other operators. This is a resilience property, not a guarantee of perfect uptime. [R2][R4]

Less central data concentration

In federated and self-hosted models, data is split across providers and communities instead of aggregated into one company database. [R1][R4][R6]

User control and portability

Open standards and rights frameworks improve the ability to move services and data, reducing lock-in pressure over time. [R5][R6][R11]

More competition, better procurement

UK open standards guidance explicitly ties interoperability to lower lock-in risk and more supplier competition. [R6]

What is Bitcoin?

A decentralised monetary network and asset built for peer-to-peer value transfer without trusted intermediaries.

Core facts

  • Bitcoin’s design goal (2008) was peer-to-peer electronic cash without a trusted third party. [R2]
  • FCA describes cryptoassets as digital representations of value/rights using distributed ledger and cryptography, not issued by a central authority. [R3]
  • Bitcoin is a protocol and network. Speculation exists, but speculation is not the protocol itself.

What Bitcoin is not

  • Not a replacement for all public institutions.
  • Not risk-free: price volatility and scams are real. [R3]
  • Not a free pass from regulation in the UK. [R9][R10]
  • Not a universal solution for every digital problem.

Bitcoin vs Crypto: 5 Common Confusions

“Crypto” is a broad category. Bitcoin is one protocol with specific design choices. Mixing everything together creates fear and poor policy.

Quick distinction

Topic Bitcoin Cryptoassets (broad category)
Scope A single open protocol/network launched in 2009. [R2] Many token and network types with different properties. [R3]
Issuer No central issuer. [R2] Can be decentralised, foundation-led, or company-led. [R3]
Energy profile Proof-of-Work; measurable and energy-intensive. [R13] Varies by design; do not assume one profile fits all. [R1][R3]
Regulatory treatment Within UK/EU regulatory perimeter for firms/markets. [R9][R10] Also regulated, but obligations vary by asset/service type. [R9][R10]

Top 5 fear-driving conflations

  1. “Bitcoin = all crypto.” Correction: Bitcoin is one network inside a wider cryptoasset category. [R2][R3]
  2. “Bitcoin is invisible and untraceable.” Correction: Bitcoin transactions are publicly broadcast and recorded; users are pseudonymous, not magically invisible. [R2]
  3. “Bitcoin is unregulated in practice.” Correction: UK firms doing relevant cryptoasset activities must meet FCA requirements; EU MiCA framework is live. [R9][R10]
  4. “All crypto has the same energy impact.” Correction: Energy use depends on protocol design; A06 itself states most decentralised applications do not require PoW. [R1]
  5. “Mining can only hurt grids.” Correction: Evidence shows context-dependent flexible-demand behavior (curtailment), which can support balancing in some regions. [R8][R13]

Energy, mining, and grid balancing: evidence

What the current data says, and what it does not say.

Evidence order in this section: Cambridge primary research first [R13], then U.S. EIA system reporting [R8], then commentary framing [R14].

Magnitude of use

138.2 TWh

Survey-based annualised electricity estimate as of 30 June 2024. [R13]

183 TWh

Modelled annualised electricity level by 31 December 2024, despite hardware efficiency improving. [R13]

+111%

Cumulative electricity growth from 1 Jan 2021 to 31 Dec 2024. [R13]

+455%

Cumulative hashrate growth over the same period. [R13]

52.4%

Survey-based share of “sustainable energy” (renewables + nuclear). [R13]

888 GWh

Reported load curtailment by surveyed miners in calendar year 2023. [R13]

>1,000 MW

EIA reported large U.S. mining operators curtailing over 1,000 MW during stress periods. [R8]

Composition and grid behaviour

Energy mix comparison bar (baseline vs current)

Baseline (Cambridge 2022 estimate)

Other fossil: 0.8%

Current (Cambridge survey, June 2024)

Other fossil: 0.5%

This is the closest like-for-like Cambridge comparison currently published: 2022 estimate vs 2024 direct-survey snapshot. [R7][R13]

Data quality varies by method and geography, so estimates may change year to year. [R13]

How mining can support grids (context-dependent)

  1. 1. Surplus or low-price power appears
  2. 2. Flexible mining load turns on
  3. 3. Peak demand or stress event arrives
  4. 4. Miners curtail quickly, power returns to grid

EIA reports miners seeking low-cost power near wind/solar in Texas and curtailing load during system stress. This is a tool, not a universal climate solution. [R8]

Flare gas mitigation: potential and limits

Cambridge’s 2025 report models that reclassifying power from otherwise flared gas can increase “sustainable” share from 52.4% to 55.7%, with emissions estimates highly sensitive to assumptions. [R13]

Translation for policy: treat methane-mitigation claims as scenario-based, and require site-specific measurement before scaling. [R13]

Detailed energy methodology notes
  • Cambridge survey snapshot date: 30 June 2024. [R13]
  • Network electricity levels are modelled and updated over time. [R13]
  • Location-based and survey-based methods can diverge materially. [R13]

Relevant Woominer points, checked against evidence

The Woominer explainer is useful communication framing. These points are retained only where primary-source evidence supports them. [R14]

“Energy mix matters, not just TWh”

Supported. Cambridge shows mix composition is central to emissions outcomes. [R13]

“Mining can be flexible demand”

Supported in specific contexts. EIA and Cambridge both report curtailment behavior in practice. [R8][R13]

“Flared gas use can cut harm”

Partly supported as potential. Cambridge modelling shows possible mitigation, but results vary by assumptions and need local verification. [R13]

“Avoid simplistic extrapolations”

Supported. Cambridge shows hashrate and electricity changed at very different rates from 2021 to 2024. [R13]

How this aligns with Motion A06

Public-interest talking points from ST300.4.1-4.6 and ST391. This briefing does not endorse any party; it maps evidence to one public motion for transparency.

Open, auditable public services

A06 calls for a presumption of FOSS, low-energy design, interoperability, and reduced vendor lock-in in public services. [R1]

Proportionate regulation

A06 argues liability should not automatically punish people enabling open protocols when they are not centralised gatekeepers. [R1]

Rights over devices and software

A06 supports users’ rights to install, modify, and control software on devices they own. [R1]

Evidence-led energy policy

A06 references Bitcoin as a tested example but requires UK-specific, climate-compatible, democratically governed assessment. [R1]

Reality check: risks and safeguards

Serious adoption means serious guardrails.

Risks to acknowledge

  • Cryptoassets remain high risk for consumers. [R3]
  • Scams, fraud, and poor custody practices cause real harm.
  • Energy use is significant and still partly fossil. [R13]

Safeguards that matter

  • Use FCA-registered firms where relevant in the UK. [R9]
  • Follow AML, tax, and consumer-protection rules. [R9][R10][R12]
  • EU MiCA transitional windows run through 1 July 2026. [R10]
  • Prioritise measurable outcomes over ideology in pilots. [R1]

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Method & Sources

Source selection priority: primary research, regulators, and official standards. Commentary sources are secondary and explicitly labelled.

Energy data sources first

  • [R13] Cambridge Digital Mining Industry Report (April 2025)
  • [R8] U.S. EIA Today in Energy (Feb 8, 2024)
  • [R7] Cambridge summary post of the April 2025 release
Full references (14)
  1. [R1] Green Party Motion A06 (local PDF): a06-motion.pdf
  2. [R2] Satoshi Nakamoto, Bitcoin whitepaper (2008): bitcoin.org/bitcoin.pdf
  3. [R3] FCA Crypto Basics (definitions and risk warning): fca.org.uk/investsmart/crypto-basics
  4. [R4] W3C ActivityPub Recommendation (federated social networking): w3.org/TR/activitypub/
  5. [R5] W3C DID Core (control of identifiers by DID subjects): w3.org/TR/did-1.1/
  6. [R6] UK Open Standards Principles (interoperability and avoiding lock-in): gov.uk/open-standards-principles
  7. [R7] Cambridge Judge Business School summary of CCAF April 2025 mining report: jbs.cam.ac.uk/.../sustainable-energy-rising-in-bitcoin-mining
  8. [R8] U.S. EIA Today in Energy (Feb 8, 2024) on bitcoin mining electricity use: eia.gov/todayinenergy/detail.php?id=61364
  9. [R9] FCA cryptoassets information for firms (UK registration perimeter): fca.org.uk/cryptoassets
  10. [R10] ESMA MiCA page (grandfathering/transitional period context): esma.europa.eu/.../markets-crypto-assets-regulation-mica
  11. [R11] ICO right to data portability guidance: ico.org.uk/.../your-right-to-data-portability
  12. [R12] HMRC Cryptoassets Manual: gov.uk/hmrc-internal-manuals/cryptoassets-manual
  13. [R13] Cambridge Digital Mining Industry Report (April 2025): jbs.cam.ac.uk/.../cambridge-digital-mining-industry-report
  14. [R14] Woominer explainer article (used for framing, then cross-checked): woominer.com/.../bitcoin-energy-consumption-explained...