Bitcoin Mining Is Not Environmentally Damaging: Report

By Prashant Jha

A new report from CoinShares is giving us new perspectives on the condition of the Bitcoin mining industry. One of the most important conclusions noted by the report is that the Bitcoin mining sector may not be as environmentally damaging as one might have guessed. Apparently, because of the large-scale use of renewable energy these days, the Bitcoin mining industry is becoming increasingly environment-friendly.

This finding is not in line with the general conception that Bitcoin mining causes environmental damage. The report, titled “Bitcoin Mining Network” and compiled by Christopher Bendiksen and Samuel Gibbons, covers aspects of crypto mining trends and identifies the average costs incurred in mining operations. The third edition of this biannual report provides incisive insights into the nature of crypto mining operations today.

CoinShares is a virtual asset investment and research firm that is best known for offering exchange traded crypto investment products, including Bitcoin and Ether Trackers. The report notes that mining sector is predominantly populated by miners who come from areas with cheaply available hydroelectricity. Most of them tend to come from places in Scandinavia, Pacific North West, Eastern Canada and the Caucasus.

The report, having made use of data from some common mining locations around the world, concluded that the Bitcoin mining industry is largely supported by use of renewable energy. Christopher Bendiksen, who heads research at CoinShares, commented:

“Our current approximate percentage of renewable power generation in the Bitcoin mining energy mix stands at 74.1%, more than four times more renewable usage than the global average energy mix.”

This report constitutes a significant victory for the Bitcoin mining community who have frequently been at the receiving end of a lot of flak for using up such a great deal of electricity. This is also reassuring at a time when climate change is fast becoming a monstrous concern for the world.