Recent reports show that Bitcoin mining uses large amounts of renewable energy due to economic incentives. This turn of events increased the number of sustainable electricity mixes to almost three times the world average.
Because renewable energy offers a low cost, Bitcoin miners, who spent 68.42% of their total income buying electricity, have increased their efficient use of green energy. A recent data review shows that their mix of sustainable energy is higher than any country or industry.
Sustainable power mix in Bitcoin mining estimated at 58% – Source: Arcane Research
Renewable energies are not flexible and their locations are not convenient for most people. As bitcoin miners move close to energy sources to reduce costs, they are a viable solution to avoid wasting the sustainable energy that would otherwise be used, as explained by CoinShares.
According to a survey by the Bitcoin Mining Council (BMC), the power mix used by Bitcoin miners rose 3% sustainably from the second quarter to around 57.7% in the third quarter of 2021, “making it one of the most sustainable industries in the world”. . ”
MicroStrategy CEO Michael Saylor previously stated that the Bitcoin Mining Council’s efforts to create clarity and transparency about Bitcoin mining will most likely play “an important role in demystifying” the industry.
In addition, a whitepaper from the Bitcoin Clean Energy Initiative at the beginning of this year explained how Bitcoin mining is “particularly suitable for using renewable energies” to accelerate the energy transition towards a cleaner power grid:
With Bitcoin mining integrated into a solar system, (…) energy providers – whether utilities or independent companies – could play the arbitrage between electricity prices and Bitcoin prices, as well as potentially sell the “excess” solar electricity and almost all of them supply electricity requirements without reducing profitability .
Effects of the Chinese ban on Bitcoin mining
Digiconomist data shows that China’s ban on all Bitcoin mining activities has reduced the total amount of “active computing power on the network” by 50%. The reduction in mining competition also resulted in higher incomes for active miners worldwide.
Torbjørn Bull Jenssen, CEO of Arcane, previously commented:
As China turns away from Bitcoin mining, the mining industry as a whole is becoming increasingly green and a driver of renewable energies around the world. Now is an excellent time for Arcane to enter this segment. (…) Mining is a very interesting stand-alone business and also offers significant synergies with our other investments and our business. I look forward to finalizing the Arcane Green Data strategy and presenting it to our partners and investors.
Related reading | Is China Considering Lifting Bitcoin Mining Ban? The NDRC is conducting a public survey
In a broader panorama of energy consumption by bitcoin miners, Square is funding a solar-powered facility for bitcoin mining, El Salvador is exploring the feasibility of using volcanic renewable electricity for bitcoin mining, and other countries are proposing economic incentives for bitcoin miners to do so use renewable energies.
Related Reading | Jack Dorsey: Square Might Build a Bitcoin Mining System
CoinShare stated in the June report that Bitcoin’s network is “more renewable energy fuel than almost any other major industry in the world”.
Bitcoin trading at $ 60,618 on the daily chart | Source: BTCUSD on TradingView.com
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