A study developed by CoinShares identified that 74% of the bitcoin mining is made with renewable energy. The information was published in June, in the biennial mining report of the company.
According to the report, the geographical analysis of the leading companies identified that much of the bitcoin mining is concentrated in regions where there is greater production of renewable energy. The research also highlights that, considering the current prices, the average mining is highly profitable. According to the report, there’s positive feedback, even for users who have used outdated mechanisms. Current producers that work with high cost are also profiting.
The report highlights that the costs related to the mining process, especially with energy, had fallen considerably in 2019. This helps insures the activity profitability these days. “With the current costs, the average miner is quite lucrative. Today, both those with outdated equipment as well as the miners with higher cost are able to have a positive return on investment (ROI)”.
Mining is the most renewable energy-powered operation
As 74% of the bitcoin mining is made with renewable energy, this makes this operation more fueled by renewable energy sources more than any other large scale industry in the world. The study had also identified that since November of last year, the total of the network hash rate has increased from 40 hash quintillion hashes per second (EH/s) for 50 EH/s.
This means that during the period, the growth of the computing power invested in the maintenance of the network was slower than the average over the decade. However, it still stands close to the five-year average.
Moreover, CoinShares assesses that the recent fall in the hash rate of the Bitcoin is caused by outdated mining hardware. This is because the cost would have made them more profitable to be run. The company also believes that the implementation of the next generation can be even more profitable. It is expected that the industry will count on more efficient equipment and application specific integrated circuits (ASICs).