According to a опроса, conducted by the Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge, 76% of cryptocurrency miners on the Proof-of-Work consensus algorithm use renewable energy resources, but “green electricity” accounts for only 39% of total consumption.
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Sixty-two percent of miners cited hydroelectric power as their primary energy source. Following were coal-fired and natural-gas plants — 38% and 36%, respectively.
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Distribution of energy sources used for mining. Source: CCAF.
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According to the survey, Chinese miners are equally reliant on hydroelectric power and coal—65% of respondents named them. CCAF analysts say this is linked to the concentration of mining capacity in Sichuan and Yunnan (an excess of hydroelectricity), and Xinjiang and Inner Mongolia (coal generation).
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Distribution of miners’ energy resources by region. Source: CCAF.
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Analysts noted that North America uses the widest range of electricity sources for mining. They pointed to a high share of gas — 41%. The latter, in CCAF’s view, is linked to the development in Texas and North Dakota projects for using associated gas to mine Bitcoin.
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CCAF specialists noted that they had previously launched an interactive map based on the Cambridge Bitcoin Electricity Consumption Index (CBECI) to track the energy consumption of the Bitcoin network. Its data, combined with the survey results, provide an alternative approach to assessing miners’ energy balance.
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Under this methodology, about 29% of Bitcoin mining is powered by renewable energy sources. The highest figure is in North America (63%), but the region accounts for only 8% of Bitcoin’s hashrate.
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Distribution of renewable energy resources in Bitcoin mining. Source: CCAF.
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According to CBECI, the annual electricity consumption of Bitcoin miners is estimated at 64 TWh. Critics of cryptocurrencies have repeatedly argued that the energy-intensive mining industry harms the environment.
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Earlier researchers from the University of Hawaii calculated that, only for 2017, hydrocarbon emissions from Bitcoin mining amounted to 69 million tonnes. However Danish researchers concluded that generally accepted calculations overstate the figure by almost 70%, not accounting for the use of renewable energy.
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Bitcoin continues to face accusations of environmental harm, with among its recent critics blockchain expert Alex de Vries of PwC and Ripple CEO Brad Garlinghouse.
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