Bitcoin mining promotes sustainable development, with over 50% of energy coming from renewable sources
The Bitcoin mining industry is not only continuously advancing technologically but has also made significant progress in sustainable development; however, the energy issue is a concern for the public!
According to the Cambridge Centre for Alternative Finance's mining report, as of the first quarter, despite a 17% annual increase in electricity consumption for Bitcoin mining, reaching 138 terawatt-hours, more than 50% of its energy consumption comes from renewable sources such as hydropower and wind energy. This data indicates that the Bitcoin mining industry is achieving long-term sustainability through diversification and innovation.
The United States currently continues to dominate the global Bitcoin mining industry, with 75.4% of the Bitcoin hash rate coming from the U.S., followed by Canada at 7.1%. Although North America remains dominant, emerging mining activities are also appearing in South America and the Middle East.
Moreover, the mining machine market is highly concentrated, with Bitmain holding an 82% share, and the top three manufacturers accounting for over 99% of the market. Although ASIC efficiency has improved to 28.2 joules per terahash, a 24% increase year-on-year, electricity costs remain high, accounting for over 80% of operating expenses, with an average cost of $45 per megawatt-hour and a total average operating cost of $55.50 per megawatt-hour.
Despite the halving event putting pressure on mining profit margins, the industry is maintaining profitability by enhancing efficiency and optimizing electricity management strategies. To mitigate risks such as energy price volatility and regulatory uncertainty, mining companies are actively adopting diversified layouts, regional expansions, and electricity hedging measures.
At the same time, more and more mining companies are actively entering the high-performance computing field, making energy innovation a core operational focus. Over 70.8% of mining companies are also involved in developing natural gas combustion waste heat recovery solutions for more effective integration with the power grid. This fully reflects the relentless efforts of the entire industry to reduce its environmental impact.
Overall, the Bitcoin mining industry is evolving towards a more sustainable and diversified operational model. Although facing some challenges, through technological innovation and environmental protection initiatives, the industry is gradually becoming greener and more efficient.
What do you think the future of Bitcoin mining will look like? Will it be diversified based on high-performance computing, or will it continue to rely on traditional models? Leave your comments and discuss in the comments section!
