A new report from Coinshares has found out some surprising facts about bitcoin mining. The paper called “The Bitcoin Mining Network” concluded that bitcoin mining was one of the greenest industries in the whole world. This because miners concentrate in pockets where renewable energy is aplenty. Besides this, this fact benefits miners because renewables are way cheaper than other options.
Coinshares, a cryptocurrency investment firm, announced this week the release of a new mining research with amazing information. Their research arm, Coinshares Research, has published a new report that states good things about the bitcoin mining industry. The report, named “The Bitcoin Mining Network” studies the actual state of the mining activity.
As everyone knows, bitcoin mining is a power intensive activity. It takes a considerable amount of energy to maintain the network running. That has spurred a critical movement against bitcoin that declares bitcoin as an inefficient payment alternative. Much has been said about the consumption of the bitcoin mining network. However, the truth is that at this time, its nothing more than speculation.
However, Coinshares report does a good work easing up these worries. the report states that bitcoin mining might be a good thing for renewable energy. They declare that “Could the rise of cryptocurrency mining actually be a highly desirable prospect for the renewables industry? It is obvious that running fiber is cheaper than building UHV grids. The extreme mobility and low manpower requirements of mining gear compared to its total power draw, therefore, makes it ideal for directly monetizing “, directly linking mining with the profitability of remote renewable energy sources.
The location of mining centers spurs another important conclusion. The paper states that “Based on historical data on energy mix and locations of cryptocurrency mining operations in China, we have shown that contrary to the common narrative, the vast majority of global Bitcoin mining capacity (minimum 77.6%) is running on renewable energy”.
Not only that, it states that mining could be, in fact, a good technology that serves to leverage the excess of renewable energy produced in these remote areas. This is also directly related to the need for cheap energy to locate a mining facility to be profitable in the long run.
Despite this, cryptocurrency mining stats are still sketchy at best. Most high profile mining operations are secret and their composition and energy consumption are still a mystery.