74% of Bitcoin Mining Is Powered by Renewable Energy

John Vibes
  • A new study from CoinShares indicates that 74% of Bitcoin mining operations are powered by renewable energy. 
  • This research challenges the idea that that proof of work mining is harmful to the environment and a drain on non-renewable resources.

A recent 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 also indicated that Bitcoin (BTC) mining operations are often concentrated in areas where renewable energy sources are abundant. Miners are actually incentivized to do this because it is more profitable in the long term for them to use renewable energy in most cases.

However, it seems that renewable energy use in the industry is slightly down from last year, when roughly 77.8% of miners were using renewable sources. 

According to the report:

“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.”

If these numbers are correct, that would make the blockchain industry “more renewables-driven than almost every other large-scale industry in the world.”

In addition to these energy statistics, the report also suggests that the average miner is still making a profit, even during the prolonged bear market. According to the report:

“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.”

The paper also covered many other interesting trends, like the changes in the network's average hashrate. 

Energy Usage Concerns 

Additionally, it is important to note that proponents of cryptocurrency insist that the technology consumes much less energy than the traditional banking and credit card companies.

It has even been calculated that Bitcoin mining uses less electricity annually than seasonal Christmas lights. Most of the large crypto mining operations are making significant efforts to reduce their carbon footprint. 

Last year, Cryptosolartech, Spain’s largest Bitcoin miner, announced that they were building a 300 MW solar farm to power its mining operations.

In March of this year, the leading crypto mining startup Bitmain was reportedly planning to set up 200,000 units of mining equipment in areas of China that offer inexpensive hydroelectric power.

Bitcoin Billionaires Tyler and Cameron Winklevoss Hold a Substantial Amount of Ether

Michael LaVere
  • Bitcoin billionaires Tyler and Cameron Winklevoss claim to own a substantial amount of Ethereum.
  • The Gemini co-founders say their ether holding is in the "same galaxy" as the amount of BTC they own. 

Tyler and Cameron Winklevoss, known collectively as the Winklevoss Twins, claim to hold a substantial amount of ether in addition to their bitcoin fortune. 

The Winklevoss Twins, who have an estimated net worth over $1 billion in bitcoin holdings, said in a recent interview that they have also invested heavily in ethereum. 

Speaking with Camila Russo of The Defiant, Tyler and Cameron revealed they held a substantial position in ether.

We definitely own a lot of Ether. They’re large and it’s a material amount, yeah quite large… I think it’s safe to say material by any person’s standard, like anybody’s wealth amount.

The twins continued, 

It’s sizeable. A couple of years back we made a concerted effort to buy a lot of Ether.

While the Winklevoss’ did not reveal their exact ether holdings, they hinted it was in the “same universe” and “same galaxy” as their bitcoin holdings. 

The Winklevoss Twins, who co-founded the cryptocurrency exchange Gemini, have previously made it known that their goal is to hold 1 percent of the world’s total supply of bitcoin. In 2013, the Twins claimed to have more than 120,000 BTC, valued at $1.1 billion at today’s prices. 

Featured Image Credit: Photo via Pixabay.com