The Bitcoin mining industry is now 58.9 percent powered by green energy. That’s according to a new study by the Bitcoin Mining Concil (BMC). That’s not all: Bitcoin mining has also gone green again in terms of profitability. Since the value of Bitcoin has risen above $20,000, the business is profitable again. Due to the bear market, miners were sometimes working at a loss in the past months.
Bitcoin mining is 58.9% based on renewable energy
A few years ago, most Bitcoin mining was done using non-renewable energy sources. This is no longer the case. According to a report by the Bitcoin Mining Council (BMC), a group of companies involved in Bitcoin mining worldwide, 58.9% of the electricity used for Bitcoin mining in the fourth quarter of 2022 came from renewable energy sources. As such, the bitcoin mining industry is one of the most sustainable industries in the world.
Based on this data, the sustainable energy mix of the global bitcoin mining industry improved slightly to 58.9% and remains one of the most sustainable industries in the world.BMC report
The Bitcoin Mining Council (BMC) study also reveals that the technological efficiency of the global Bitcoin network has increased from 19.3 EH per gigawatt (GW) in 2021 to 22.4 EH per GW in Q4 2022. This represents a 16% increase in one year.
This increase in technological efficiency means that the amount of energy consumed for Bitcoin mining has decreased by 16%.
The share of renewable energy in the bitcoin mining industry in Q4 2022 is encouraging. Nevertheless, it is slightly down by 0.5% from the previous quarter’s figures. Indeed, the Bitcoin Mining Council (BMC) report released in October 2022 reveals that the share of renewable energy in Bitcoin mining was 59.4% in Q3 2022.
Bitcoin mining is profitable again
Due to the drop in the value of Bitcoin, the mining of this crypto had become less profitable. Month after month, Bitcoin revenues continued to decline, causing some major players in the industry to go bankrupt. According to some estimates, Bitcoin miners were losing about $4,000 per BTC when FTX collapsed.
Today, Bitcoin operators are now in good shape. With Bitcoin at over $20,000, the Bitcoin mining industry has become profitable again. Indeed, many miners had the $20,000 mark as their critical threshold. With the value of Bitcoin now above that threshold, many miners have returned to work. One result of this is that the hash rate of Bitcoin has increased.
The rise in the price of Bitcoin is not the only factor making mining profitable. In fact, the price of energy has dropped in several countries. So we’re seeing Bitcoin mining on a large scale again, notes Matthew Schultz, executive chairman of crypto mining company CleanSpark.
Criticized heavily for its energy consumption, Bitcoin mining continues to improve. In addition to using mostly renewable energy, Bitcoin mining consumes less energy than before. Now that Bitcoin is in the green, the mining industry has also become profitable again. For it to be sustainable, this rise in Bitcoin needs to last. Let’s hope it does.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.