The world’s largest digital currency, Bitcoin (BTC), has been under criticism due to its extensive energy usage, supposedly sourced from fossil fuels, as per claims. However, in a recent interview with Bloomberg, the Chief Strategy Officer at CoinShares, Meltem Demirors, mentioned that Bitcoin is currently more energy-friendly than the United States grid.
This is quite often ignored by the mainstream media, according to Demirors.
How China is Pushing Bitcoin to Green Energy
Some weeks ago, the Chinese authorities banned Bitcoin mining operations in the country, due to energy consumption concerns. Amid the development, the Bitcoin hashrate took a significant hit, which some say, contributed to the decrease in the cryptocurrency’s value.
On the contrary, China’s crackdown on Bitcoin mining is essentially helping to decentralize BTC mining, given that miners are now migrating to different jurisdictions, while also sourcing for cheaper electricity from renewable energy, Demirors said.
“What Bitcoin miners are doing around the world is they are trying to find access to low-cost power, which in most instances is going to be renewable energy.”
Bitcoin is 3x More Energy Friendly
Demirors further mentioned that Bitcoin is currently three times more energy-friendly compared to the US power grid.
Back in 2018, CoinShares found that about over 73 percent of BTC mining was done with renewable energy, primarily in the form of hydroelectric power in Sichuan, China. Demirors also cited the research report from the Cambridge Centre for Alternative Finance (CCAF) last year, which confirmed that over 40 percent of BTC mining was done using renewable energy.
Additionally, Bitcoin Mining Council, an open forum of Bitcoin miners, recently published a report which noted that over 56 percent of BTC mining runs on renewable energy, which is about three times compared to the 19 percent share of renewable energy in the US grid, says Demirors.
Bitcoin is also creating a market or demand for renewable energy. It’s serving as an incentive for renewable energy producers to add green energy to power grids.
Bitcoin Hashrate and Price Update
The BTC hashrate is gradually rising. As of July 12, the hashrate on the network totaled 97.205 million terahashes per second, according to Blockchain.com. Also, the leading cryptocurrency was trading at $32,378 on CoinMarketCap, with a market capitalization of over $607 billion.