The authors calculate the conservative value of at least 77.6 percent green electricity using a combination of qualified estimates and data on the distribution of green electricity in the strongholds of Bitcoin Mining.
First, the study identifies the Chinese province of Sichuan as the core region of mining. About 80 percent of Chinese mining farms are located there. In Sichuan, on the other hand, around 90 percent of the electricity comes from renewable energies. This is the result of a study by Morgan Stanley.
According to the authors, the lion’s share in Sichuan alone means that a base value of 43.2 percent of Bitcoin mining must come from renewable energies.
The Bitcoin code report says:
“The correlation is clear: it is precisely the provinces that place the greatest emphasis on renewable Bitcoin code energies that are home to the majority of Chinese mining farms. More about it in this Bitcoin code review.
And that’s not all. After all, around 40 percent of Bitcoin is not mined in China. The next most important focus regions are Washington State, Oregon, British Columbia, Scandinavia and Iceland. All these regions have been proven to rely on green electricity. Oregon and Iceland even draw a proud 100 percent of their electricity from renewable energies.
Eco Sponsor Bitcoin code Mining?
The authors dare an even steeper thesis: Bitcoin code Mining is even conducive to the expansion of renewable energies. Because Bitcoin code uses surplus energy from the power grid and therefore supports the profitability of the power grid. Since there is constant demand, mining thus promotes the development of renewable energies.
Bitcoin Mining is first and foremost a predictable business. The hash rate increases to an extremely proportional extent. The miners can therefore predict how much energy they will need in the future. This also makes it possible to plan the expansion of renewable energies in the respective regions, as there must always be a buyer for the electricity capacity produced.
The report ultimately calls Bitcoin Miner the “electricity consumer of last resort”. In other words, an industry that creates a kind of basic demand at all times and thus stabilises the electricity grids.
Whether the authors are right with this thesis remains to be seen. However, it must be acknowledged that Bitcoin Mining does not represent an unnecessary burden on the environment. Rather, it is the necessary process to protect about 70 billion US dollars of market capitalization from attacks. A benefit that undoubtedly justifies the energy expenditure.
If you would like to learn more about how Bitcoin Mining actually works, this tutorial is recommended.
We also have a podcast episode on Proof of Stake and Proof of Work.