CoinShares, a crypto investment, and research firm has published its bi-annual mining report last week, and it has some good news for the crypto community at large. As per the report, 74.1% of Bitcoin mining is powered by renewable energy. This might sound great, but in reality, the number went down by over 3% from 77.8% in November 2018.
However, this is still a healthy number, both environmentally and economically. The report states that at current rates, “the average miner is highly profitable, with even older gear and high-cost producers currently able to make positive ROI.” The report also indicates that Bitcoin mining is concentrated in regions where there is ample availability of renewable energy.
Globally, Bitcoin mining currently uses 4.7 GW, which is the same as the November 2018 figure. However, the report says that the actual requirement has gone up from 3.9 GW in November last year, to 4.3 GW, which indicates that the additional energy consumed by hashing for cooling has gone. Also, the report suggests that at current prices, Bitcoin mining is highly profitable for miners. It stated,
“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.”
Bitcoin mining, as the figures show, requires a lot of energy, which could put a lot of strain on conventional sources, if the renewable sources continue to decline. A 3% drop in just six months is a point of worry, and the industry must take serious efforts for preventing further decline. As it is, Bitcoin is facing a lot of fire from authorities worldwide, and it increasingly eating conventional energy wouldn’t help it in any manner.