Bitcoin (BTC) mining appears not to be bad for the environment as people thought after the new data from CoinShares research. Let’s look into it further in the coming altcoin news below.
Following the data from Coinshares it appears that about 74% of mining activity runs on renewable energy and according to the research:
“We show that Bitcoin mining is mainly located in global regions where there are ample supplies of renewable electricity available. And…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.”
If you take a closer look on the internet, you can see plenty of information that suggests the opposite of what the research company has to offer. Some even suggest that Bitcoin is worse for the environment rather than gold mining. Claims of this nature can spike huge concerns for everyone who hopes that Bitcoin is displacing the safe-zone gold market.
Looking deeper into the report it becomes very evident why the electricity usage while bitcoin (BTC) mining might be as green as they claim. There is also another trend among miners who are choosing areas where hydroelectric power is profuse:
“Bitcoin miners are fairly well distributed across the globe…Looking more closely at their distribution, it is clear that they are predominantly — by volume weight — confined to technologically advanced, relatively sparsely populated, hilly or mountainous regions traversed by powerful rivers.”
However, due to the huge dominance of China in this part of the industry, we can see how and why hydroelectric power is a crucial factor. CoinShares made clear that Sichuan is increasing its share on the global bitcoin mining and according to the latest cryptocurrency news reports we can see that:
“We currently estimate that 60% of global mining happens in China, and that Sichuan alone produces 50% of global hashrate…Our estimate for Sichuan’s dominance within both China and the world is marginally higher than in our last report and is a result of the ‘Fengshui’ rainy season in the hydro-heavy ‘Yunguichuan’…provinces of Southwestern China.”
Bitcoin (BTC) mining is still predominantly running on hydroelectric power so this means that it is mainly running on water and what could be greener than that?
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