According to a report by CoinShares, Bitcoin is being mined with mostly renewable energy which is more cost effective and less harmful for the environment.
What is CoinShares?
CoinShares is a crypto investment and research firm and it has published a bi-annual mining report last week. According to the report, 74.1% of the mining power in Bitcoin is generated by renewable energy sources, however, that is a 3% decline since November 2018.
A renewable energy system can be a bit expensive to build, but is definitely better than paying electricity bills; also, countries that make use of renewable energy, have lower electricity costs.
The report states:
“Among our findings is an estimate that since November, the market-average, all-in marginal cost of creation, at ¢5/KWh, and 18-month depreciation schedules has decreased from approximately $6,800 to approximately $5,600, mainly as a result of lower assumed cooling and overhead costs. This suggests that, at current prices, the average miner is highly profitable, with even older gear and high-cost producers currently able to make positive ROI.”
So yeah, as I said in a previous article, mining can be still profitable.
I don’t think a 3% decline in renewable energy during the past 6 months is something we should worry about at this point.
I would love to see comments below with thoughts of what could happen to BTC in the upcoming halving.
Note: Everything said in this article should not be taken as financial advice. The reader should do his own due diligence before investing in something.