Cryptocurrency: Christine Lagarde talks about crypto in G20 Summit

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The concept of Bitcoin [BTC] mining has always been looked at like an evil spawn by many mainstream industries and its proponents. But a new report from Coinshares has quashed that notion by stating that 74 percent of the world’s BTC mining operations were driven by renewable energy. The report said:

“We calculate a conservative estimate of the renewables penetration in the energy mix powering the Bitcoin mining network at 74.1%, making Bitcoin mining more renewables-driven than almost every other large-scale industry in the world.”

The report added that the total electricity draw of the entire Bitcoin mining industry was approximately 4.7 GW, an estimate similar to that done in November 2018. The only difference from the November 2018 analysis was that miners had used 20 percent more electricity for system cooling purposes. The release further stated:

“Meanwhile, the current amount of energy required for hashing alone is estimated to be ~4.3 GW, up from 3.9 GW in November 2018. This result is also broadly in line with a ~25% increase in hashrate and a ~10% increase in gear efficiency. On an annualised basis, we estimate that the network currently draws the equivalent of ~41 TWh.”

The report clearly elucidated that there was a general energy mix patterns amongst miners, including both fossil fuels and renewable energy sources. Based on the usage, miners were split into two different categories, the first category covering those miners who use hydroelectricity while the others included those that didn’t. According to the report, some regions had a mix of fossil, solar, nuclear and wind generations sources while Asian regions such as Iran and Xinjiang used coal with the addition of wind energy.

One negative point cited by the report was that there was actually a 4 percent drop in the usage of renewable resources when compared to the 78 percent recorded back in November 2018. Coinshares informed:

“We currently estimate that 60% of global mining happens in China, and that Sichuan alone produces 50% of global hashrate, with the remaining ten percent split more or less evenly between Yunnan, Xinjiang and Inner Mongolia.”

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