Bitcoin Mining consumes a lot of energy. At least that is the dominant opinion of many Bitcoin critics. A new study by Coinshares researched the impact of bitcoin mining on energy creation and cost.
Mining with renewable energy
The experts at CoinShares Research concluded that Bitcoin Mining is rather the exact opposite of what it is supposed to be. 80 percent of electricity used by Bitcoin mining comes from renewable energies. The exact value is estimated at 77.6%. The study is named “The Bitcoin Mining Network – Trends, Marginal Creation Cost, Electricity & Sources“. The analysts even went one step further. In the light of the information available, they said Bitcoin Mining in some places brings more stability to the regional electricity markets.
Experts: Mining should promote green electricity
Through mining, excess energy is being used. Mining even promotes the regenerative energies in the markets. The bottom line in the study was not least the question of whether mining does make sense. The experts’ answer with regard to PoW algorithms is yes, since these are technically considered to be particularly secure. The authors state that mining is by no means a waste of energy. Rather, the mining process ensures that the Bitcoin system is maintained and able to develop further.
In addition, according to the authors of the study, mining can continue to be profitable. For example in the People’s Republic of China, but also in Western countries such as Canada or Scandinavia. Overall, mining proves to be an interesting alternative in places where electricity prices are low.