A recent report by Visual Capitalist suggests that Bitcoin mining is becoming more sustainable, with miners increasingly utilizing renewable energy sources. Pro-Bitcoin portfolio manager Seth recently highlighted this trend, pointing to the study’s findings.
The report analyzed the top 10 countries by Bitcoin mining hash rate share, which collectively account for 93.8% of the network’s processing power. Factors impacting miners’ location decisions include electricity costs, regulations, and average temperatures. The leading countries for mining are the United States, China, and Kazakhstan.
Mining Bitcoin is energy-intensive, requiring 348 terawatt-hours annually. However, renewable energy is playing a growing role. For example, the U.S., China, and Kazakhstan have renewable shares of 22.5%, 30.2%, and 11.3%, respectively.
Kazakhstan relies heavily on coal, making up 60% of its energy mix, limiting renewables currently. In contrast, rapid expansion in wind and solar has boosted China’s renewable share, although coal remains vital.
While some countries lead in sustainability, like Iceland, Paraguay, and Norway, which have nearly 100% renewable penetration, they host just 1% of mining capacity collectively.
As the report shows, economics drive miners’ decisions, but there are signs of a shift towards renewable sources. With innovations in green technologies and clean energy incentives, Bitcoin’s sustainability may continue improving. More miners are factoring environmental impact into location choices.
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