- Bitcoin mining uses a lot less electricity on a yearly basis than Christmas lights in the winter
- The use of renewable use of energy seems to be on the down from last year
In a recent study published by CoinShares which estimates that renewable energy powers around 74 percent of Bitcoin mining operations.
The paper also suggested that the flagship cryptocurrencies mining operations are commonly concentrated in areas where renewable energy sources are redundant. Miners are actually encouraged to do this because of the profit involved in it for long-term means.
The use of renewable use of energy seems to be on the down from last year when just under 78 percent of miners were using such energy sources.
The report states:
“The renewables estimate is down from 77.8% in our November 2018 report and reflects increased visibility of the industry on our part as well as movements within the industry.”
If this is accurate, this would mean that blockchain as an industry is “more renewables-driven than almost every other large-scale industry in the world.”
And in addition to this, the report suggests that the average miner is still making a profit despite the fiasco of the prolonged bear market.
“Among our findings is an estimate that since November, the market-average, all-in marginal cost of creation, at ¢5/KWh, and 18-month depreciation schedules has decreased from approximately $6,800 to approximately $5,600, mainly as a result of lower assumed cooling and overhead costs. This suggests that, at current prices, the average miner is highly profitable, with even older gear and high-cost producers currently able to make positive ROI.”
Is Energy a Worry?
So is energy usage a concern?
It is worth highlighting that proponents of cryptocurrency insist that the technology eats up a lot less energy than the traditional banking and credit card firms.
According to some reports, Bitcoin mining uses a lot less electricity on a yearly basis than Christmas lights in the winter. A lot of big crypto mining organisations are making some big effort to reduce their carbon footprint and do their bit to save the planet.
Solar farms are becoming a thing for mining operations. Cryptosolartech, based in Spain, announced they were building a farm last year in order to power its mining operations.