U.S. Leads BTC Mining, Holding 75.4% Share; Clean Energy Usage Reaches 52.4% According to Report
Crypto Mining's Environmental Footprint: An In-depth Look
Latest findings from the Cambridge Centre for Alternative Finance (CCAF) reveal that North America powers 82.5% of the world's Bitcoin mining activities. This staggering dominance comes from data pooled from 49 international mining companies, representing nearly half of the Bitcoin network's hashrate.
Sustainable Shift in Energy Sources
Shedding light on eco-friendlier practices, the report highlighted a surge in renewable energy use. An impressive 52.4% of miners now rely on renewable sources, with hydropower and wind power accounting for 23.4% and 15.4% respectively, amounting to 42.6% and 9.8% from nuclear power [1][3]. Natural gas outranks coal as the leading energy source at 38.2%, while coal's share dropped significantly to 8.9% [1][4].
However, the industry's electricity consumption rose by 17%, reaching 138 TWh, according to the research [1]. This increase came despite a 24% augmentation in mining equipment efficiency, estimated to reach 28.2 joules per terahash (J/TH) by mid-2024 [1].
Despite electrical expenses comprising over 80% of cash-based costs, with median rates sitting at $45 per MWh, the industry continues to seek greener pastures [1].
Greenhouse Gas Emissions and Reductions
The study estimates the industry's greenhouse gas emissions at 39.8 million metric tons of CO2 annually, equating to 0.08% of global emissions [1]. However, intelligent use of flared gas could potentially lower this figure to 32.9 million tons [1]. Furthermore, 70.8% of miners employ climate mitigation measures, such as waste-heat recovery and demand-side response (DSR), resulting in a reduced load of 888 GWh in 2023 [1].
Mining Hardware Market and Waste Management
A concentrated market, the mining hardware landscape is ruled by leading ASIC manufacturer Bitmain, with an 82% market share [1]. The firmware market, however, showcases more variability. Interestingly, around 86.9% of decommissioned equipment is either repurposed or recycled, with mining-related e-waste estimated at 2.3 kilotonnes for 2024 [1].
Geographical Expansion and Challenges
The report indicates a geographical expansion of mining activities, with the U.S. commanding 75.4% and Canada accounting for 7.1% of the global hash rate [1]. Nonetheless, emerging economies like South America and the Middle East are seeing increased mining activity [1].
The burgeoning mining industry, however, faces regulatory uncertainties, volatile energy prices, and Bitcoin market volatility [1]. In response, more players are venturing into diversification strategies, such as AI computing and energy innovation to maintain profits as well as contribute to sustainability efforts in the long term [1].
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- The increased use of renewable sources in crypto mining, such as hydropower and wind power, has boosted the share of renewable energy to 42.6% and 9.8%, respectively, as per the report from Cambridge Centre for Alternative Finance.
- In their study, the Cambridge Centre for Alternative Finance (CCAF) revealed that natural gas is the leading energy source for crypto mining, accounting for 38.2%, while coal's share has significantly dropped to 8.9%.
- The crypto mining industry, despite electrical expenses comprising over 80% of cash-based costs and median rates of $45 per MWh, is seeking greener energy sources to reduce its environmental footprint.
- The report estimates the crypto industry's greenhouse gas emissions at 39.8 million metric tons of CO2 annually, but intelligent use of flared gas could potentially lower this figure to 32.9 million tons.
- Among the mining hardware market, Bitmain, a leading ASIC manufacturer, holds an 82% market share, while around 86.9% of decommissioned equipment is either repurposed or recycled.
- The burgeoning crypto mining industry, facing regulatory uncertainties, volatile energy prices, and Bitcoin market volatility, is venturing into diversification strategies, such as AI computing and energy innovation, to maintain profits and contribute to sustainability efforts in the long term.
