CoinShares estimates that 73% of Bitcoin mining is powered by renewable energy for generating their crypto-revenue
On December 3, CoinShares published its second report this week in their bi-annual chain called, “The Bitcoin Mining Industry”. The report details the geographic distribution of miners, the mix of energy in the game and the benefits of Bitcoin mining can bring to the global economy.
According to research by digital asset manager CoinShares, bitcoin mining companies in China currently control 65% of the processing power of the cryptocurrency network (hash rate).
In the latest shared report, CoinShares said that 65% of global bitcoin mining operations occur in China and that the nation of Sichuan province has generated 54% of global hash rates. The remaining 35% of bitcoin miners are spread from the United States to Russia and Kazakhstan.
China’s hash rate, up from 60% in June, is believed to be the highest recorded by CoinShares since it began tracking the hash rate nearly two years ago. CoinShares said the development over the past 6 months was mostly an expansion.
Most overwhelming Bitcoin power is renewable
As for Bitcoin miners getting electricity to generate their cryptocurrency revenue – something that CoinShares notes is on its way to reaching $ 5.4 billion this year – it reports mostly from renewable energy.
Indeed, the company estimates that 73 percent of the electricity used by Bitcoin mining companies around the world is renewable. If true, this is likely to critics of critics constantly agree that Bitcoin is harmful to the environment.
In the mix of exploited energy, the report also estimates that penetration of 73% of renewable energy, 4 times the global average and a slight decrease compared to the 74% calculated in the previous report, reflects the possibility of visibility of CoinShares in the industry and the movements in it.
The report further mentions that the cyclic nomadism of many Chinese miners, and the seasonal changes in electricity prices. Especially in Sichuan, this has caused miners to migrate to Mongolia and Xinjiang during the dry season.
Over the past year, Bitcoin’s hash rate has risen significantly, regularly breaking the highest records of all time. CoinShares noted that this might be due to the more powerful mining chips issued by Chinese companies like Bitmain.
The company expects Bitcoin’s hash rate to be more evenly distributed around the world as these mining chips become easier to export. They then say that this can help turn profitable, renewable projects over time. As the industry grows, it could serve as a driver for developing new renewable energy in previously uneconomical locations.
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