A report from CoinShares Research finds that the Bitcoin (BTC) mining industry heavily uses renewable energy resources like hydropower, wind power, and solar power, and could actually drive the expansion of renewable energy production.
Essentially, Bitcoin (BTC) mining farms are often a buyer of last resort for electricity produced by renewable energy sources, meaning they buy energy that would otherwise go unused and would not be paid for. This could turn otherwise unprofitable renewable energy projects into profitable enterprises according to CoinShares, and long term more renewable energy projects may be built due to the demand for energy from the Bitcoin (BTC) mining industry.
Indeed, CoinShares finds that 73% of Bitcoin (BTC) mining is powered by renewable energy. Mining powerhouse Sichuan, which accounts for 54% of the global hash rate, uses 90% renewable energy from hydropower. In other parts of China renewable energy penetration is 44% and includes other sources like wind power and solar power. In the rest of the world renewable energy penetration is 18%.
Basically, a majority of the world’s crypto mining hash rate has concentrated itself around cheap hydropower in China, and in general major mining farms worldwide are usually near a source of abundant renewable energy, such as solar power in the Moroccan desert, wind power in Siberia, or hydropower in China and anywhere else with a swift moving river.
This data seems to shoot down the argument that Bitcoin (BTC) mining is bad for the environment, and even suggests that Bitcoin (BTC) mining could have a positive impact on the environment long term by driving the expansion of renewable energy infrastructure.