74% Of Bitcoin Mining Operations Powered By Renewable Energy
Bitcoin Mining Operations Powered By Renewable Energy – A study published by the cryptocurrency investment and research firm CoinShares, estimates that renewable energy powers roughly 74.1% of Bitcoin (BTC) mining operations.
The paper revealed that Bitcoin (BTC) mining operations are often concentrated in areas where renewable energy sources are abundant. Miners do this because it is more profitable in the long term for them to use renewable energy in most cases but it seems renewable energy use in the industry is slightly down from last year, when about 77.8% of miners were using renewable 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.”
Let say these numbers are correct, meaning that the blockchain industry is “more renewables-driven than almost every other large-scale industry in the world.”
The report also suggests that the average miner is still making a profit, even during 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.”