What happened?
A Cambridge University study found that sustainable energy now powers 52.4% of Bitcoin mining, up from 37.6% in 2022. The research, conducted by the Cambridge Centre for Alternative Finance (CCAF), indicates that renewable sources like wind and hydropower contribute significantly, alongside nuclear energy. Additionally, natural gas has overtaken coal as the primary energy source for Bitcoin mining.
Who does this affect?
This development impacts Bitcoin miners, especially those operating in global markets who are increasingly shifting towards sustainable energy. Major mining companies, including Bitfarms, CleanSpark, and Hut 8, are part of this transition, representing about 48% of the Bitcoin network’s total hashrate. It also affects the energy sector, particularly in regions where Bitcoin mining is prevalent such as North America.
Why does this matter?
The shift to sustainable energy in Bitcoin mining is significant for its potential market impact, reducing environmental backlash and possibly attracting more environmentally conscious investors. As natural gas becomes the top energy source over coal, mining operations may face different regulatory landscapes and cost structures. With the U.S. leading in Bitcoin mining activities, the focus on sustainable practices could influence energy policies and market dynamics related to cryptocurrency and technology investments.