5 Oct, 2020

Study shows Over 75% of Bitcoin Mining is Powered by Renewable Energy

Encrypted investment products and research firm CoinShares estimates that 74.1% of bitcoin mining (BTC) is powered by renewable energy in its six-month mining report released on June 5th.

The report also states that “at current prices, the mining average is extremely profitable, with even greater tools and high-cost producers now able to achieve a positive return on investment.” The document also notes that bitcoin mining is concentrated where it exists abundant renewable energy supply. The report also notes:

“Renewable energy is down from 77.8% in the November 2018 report and reflects our increased visibility of the industry as well as movements within the industry.”

The correlation between bitcoin mining and renewable energy states that the mining industry is mining more than almost any other large-scale industry in the world. The report also notes that since November last year the total network surplus has increased from 40 quintillion bpm to 50 EH / s.

This means that – during this period – the increase in computing power invested in maintaining the network was slower than its 10-year average, but below the five-year average.

The report also notes that the temporary loss reduction (about 40%) recorded at the end of last year was the first recorded case of a significant and prolonged decrease in network computing power.

CoinShares believes that the recent increase in Bitcoin contraction is caused by the reactivation of the old mining material after the higher price that made it profitable to run and the development of the next generation more efficient integrated circuits (ASIC).

As reported by Cointelegraph in May, the Canadian mining company Hut 8 made about $ 50 million last year, but caused a total loss of almost $ 140 million. Andrew Kiguel, the company’s chief executive, said at the time that he believed the margins would improve if BTC continued to rise.

Also in March, cryptocurrency mining giant Bitmain planned to create 200,000 units of mining equipment in China to take advantage of low-cost hydroelectric power in the country.