The U.S. is now the world leader in Bitcoin mining, as per the latest data from the Cambridge Bitcoin Electricity Consumption Index (CBECI).
CBECI tracks Bitcoin’s energy consumption by geography. As per the latest data from Index the US currently makes up 42.7% of the Bitcoin network’s hashrate. The rise of 14% in America's hashrate volume reflects the changing geopolitical environment of Bitcoin mining.
The industry shift has regard to China's crypto mining ban back in May. Just a year ago, the country dominated Bitcoin’s total hashrate, 89%. The ban resulted in mining operators exiting the country.
According to industry experts, the shift of Bitcoin miners from China to the U.S. is a positive development for the future of Bitcoin. In China, the mining relied on cheap renewable power available below hydroelectric dams and on fossil fuels in Northern provinces. And the dry season caused hydroelectricity to work less profitably.
Source: cbeci.org
As Bitcoin’s price has recovered from its July-worst, less intense competition resulted in higher profitability for remaining miners, mainly because of the slow relocation of Chinese mining operators.
But energy consumption still remains one of the top issues surrounding Bitcoin. As the world is becoming more environmentally conscious especially because of climate change, the crypto-energy consumption has come under increased scrutiny.
A survey last year from the University of Cambridge reported that 39% of Bitcoin mining is powered by renewable energy, which is significantly better than the 12% of renewable energy that makes up total energy usage in the United States for the same period.
"But the specialized nature of mining, in addition to a legitimate request for more transparent data, has made the discussion of Bitcoin’s climate impact both opaque and polarizing." wrote [
yahoo finance.
Since miners compete for profit, they seek the cheapest and most reliable energy source available. The unforeseeable point is whether the energy source available to them comes from renewables, or fossil fuels. Reports say that in the last two years, many energy producers with slowing profitability that burn fossil fuels have made deals with Bitcoin mining firms.
