• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 42 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days e-truck insanity
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 8 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Renewable Energy's Role In Global Bitcoin Mining

  • The top 10 countries in Bitcoin mining, accounting for 93.8% of the network’s hashrate, are led by the U.S., China, and Kazakhstan, with China's position dwindling after a 2021 crackdown.
  • Renewable energy sources account for 30% of global electricity generation in 2022, with Kazakhstan heavily reliant on coal at 60% and China expanding in wind and solar power.
  • Factors such as regulatory environment, electricity costs, and climate influence mining locations, with Canada's hydroelectric resources becoming increasingly attractive.
Bitcoin Mine

Bitcoin miners use an estimated 348 terawatt hours of electricity per year, and with the world increasingly moving to renewables, some are asking the question: just where does Bitcoin get its electricity?

To answer that question, Visual Capitalist's Chris Deckert partnered with HIVE Digital to visualize data from the Cambridge Centre for Alternative Finance and Ember, a climate-oriented energy think tank, to look at the Bitcoin network’s electricity mix. 

This is part one in our How Green is Bitcoin? series, which examines the cryptocurrency’s sustainability.  

The World According to Bitcoin

The top 10 countries for Bitcoin mining represent 93.8% of the entire network by hashrate—a measure of computational power—with the U.S., China, and Kazakhstan rounding out the top three. Together these three countries hosted nearly three-quarters of the network at the end of 2021.

Source: Hashrate (%): Cambridge Centre for Alternative Finance as of December 2021; Renewable (%) Ember, as of 2022.

China used to be the top spot for Bitcoin mining, up to 75% of global capacity, but a crackdown in the summer of 2021 saw their share drop to nil in just a couple months. Many miners relocated to nearby Kazakhstan, attracted by cheap electricity, loose regulations, and a ‘stable’ political climate, while others opted for the United States. A sizable covert mining scene has also emerged in China, now that the dust has settled.

At the bottom of the top 10 are Ireland, Singapore, and Thailand, which together host 4.9% of the network. Ireland’s reported share—and this applies to sixth-place Germany, as well—is thought to be a significant overstatement caused by miners in other countries masking their true locations.

The Role of Renewables

On a national basis, the U.S., China, and Kazakhstan each had renewable shares of 22.5%, 30.2%, and 11.3% respectively. For context, renewables made up 30% of the world’s electricity generation in 2022 (not including nuclear). 

Kazakhstan’s dismal renewable share is due to their heavy reliance on coal (60%), which is also a major export of the central Asian country. At the same time, coal contributes a similar amount of the electricity in China (61%), but their overall renewable share is higher because of their breakneck expansion of wind and solar power.

Wagons Ho?

Just where a Bitcoin miner sets up their rig is important, because unlike many other industries with factories or big head offices, they are mobile (Google ‘Bitcoin mining shipping containers’ if you need convincing).

Where they choose to put out their shingle is based on things like the regulatory regime, price of electricity, and because Bitcoin rigs generate a lot of heat, the average outdoor temperature. On this last point, here is how the top 10 breaks down by mean annual temperature:

Increasingly, though, with climate change driving the push to renewables, many Bitcoin miners are looking more closely at where their electricity is coming from. This could be why Canada—with its embarrassment of hydroelectric riches—has crept up the ranking from less than one percent of the network in 2019, to six-and-a-half percent at the end of 2021. 

ADVERTISEMENT

But considering that top renewable countries such as Iceland, Paraguay, and Norway together only hosted just over one percent of the global network, there’s still a lot more room left for growth.

By Zerohedge.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News