Recent reports show that bitcoin mining uses a lot of renewable energy due to economic incentives. This turn of events makes the number of their sustainable energy mixes almost three times higher than the world average.
Since renewable energy is offered at low cost, bitcoin miners, who had to spend 68.42% of their total income to buy electricity, have increased their efficient use of green energy. A recent data review shows how their sustainable energy mix is greater than any other country or industry.
Renewable energy is not flexible and their positions may not be convenient for most people. As bitcoin mines move closer to energy sources to reduce costs, they are an effective solution to not wasting sustainable energy that would otherwise be put in place, as explained by CoinShares.
According to a survey conducted by the Bitcoin Mining Council (BMC), the mix of electricity used by Bitcoin miners increased 3% from the second quarter to 57.7% sustainability in the third quarter of 2021, “making it one of the most sustainable industries in the world.”
Michael Salor, CEO of Microstrategy, previously said that the Bitcoin Mining Council’s efforts to bring clarity and transparency about bitcoin mining would probably play a key role in “making the industry unattractive.”
In addition, a white paper from the Bitcoin Clean Energy Initiative earlier this year explained how Bitcoin mining, while using renewable energy, is “particularly suitable for accelerating energy conversion” towards a cleaner electricity grid:
With bitcoin mining integrated into a solar system, (…) energy providers – utilities or independent entities – will have the power to arbitrate between the price of electricity and the price of bitcoin, as well as potentially sell “surplus” solar and supply almost everything. The demand for grid power without reducing profits.
Impact of China’s ban on bitcoin mining
Digiconomist data shows that China’s ban on all bitcoin mining activities has resulted in a 50% reduction in “active computing power on the network”. The decline in mining competition has created higher levels of income for active miners worldwide.
Arkansas CEO Torbjorn Bull Jensen previously commented:
As China turns its back on bitcoin mining, the mining industry around the world is becoming increasingly green and a driver of renewable energy. Now is an excellent time to enter this section of Arkansas, (…) Mining is a very interesting business alone, and it has considerable coordination with our other investments and businesses as well. I look forward to finalizing Arcane Green Data’s strategy and presenting it in more detail to our partners and investors.
Related Reading | Is China considering lifting the bitcoin mining ban? NDRC conducts public survey
In a broad panorama of energy use by bitcoin miners, Square provides a solar-powered facility for bitcoin mining, El Salvador explores the effectiveness of volcanic renewable energy use for bitcoin mining, and other countries offer economic incentives for bitcoin miners to use renewable energy. .
Related Reading |Jack Dorsey: Square can create bitcoin mining systems
Bitcoin’s network is “more renewable-driven than almost every large-scale industry in the world,” CoinShare said in a June report.