Top 10 Bitcoin mining countries and their renewable electricity portfolio

By Chris Dickert, Voronoi; Compiled: Pine Snow, Golden Finance

Bitcoin miners consume an estimated 348 terawatt hours of electricity per year, and as the world increasingly switches to renewable energy, some are asking the question: Where exactly does Bitcoin get its electricity from?

! [t8pvGu8Ixe6MePcaflAxbclB2Mu1tAXk3NjQap4q.jpeg] (https://img-cdn.gateio.im/webp-social/moments-40baef27dd-4390661112-dd1a6f-69ad2a.webp “7115067”) To answer this question, we partnered with HIVE Digital to visualize data from Cambridge Alternative Finance Hub and climate-oriented energy think tank Ember, to study the electricity structure of the Bitcoin network.

Here’s our book How Green Is Bitcoin? The first part of the series, which explores the sustainability of cryptocurrencies.

The world through Bitcoin’s eyes

In terms of hash power (a measure of computing power), the top 10 countries for Bitcoin mining account for 93.8% of the entire network, with the United States, China, and Kazakhstan in the top three. Together, the three countries hosted nearly three-quarters of the network by the end of 2021.

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Source: Hashrate (%): Cambridge Centre for Alternative Finance, as of December 2021; Renewable Energy (%) Ember, as of 2022.

China once held the top spot in Bitcoin mining, accounting for 75% of global capacity, but a crackdown in the summer of 2021 caused its share to drop to zero in just a few months. Many miners relocated to nearby Kazakhstan, attracted by cheap electricity, lax regulation and a “stable” political climate, while others chose the United States. After the dust settled, large-scale secret mines also appeared in China.

At the bottom of the top 10 are Ireland, Singapore, and Thailand, which together account for 4.9% of the network. Ireland’s reported share – and this also applies to sixth-ranked Germany – is considered grossly exaggerated, as miners in other countries have covered up their true location.

The role of renewable energy

Nationally, the share of renewable energy in the United States, China and Kazakhstan is 22.5%, 30.2% and 11.3%, respectively. For context, renewables will account for 30% of global electricity generation by 2022 (excluding nuclear power).

Kazakhstan’s dismal share of renewable energy is due to its heavy reliance on coal (60%), which is also the Central Asian country’s main export. At the same time, coal generates comparable electricity in China (61%), but its share of overall renewables is higher due to the rapid expansion of wind and solar energy.

Wagons Ho?

(Golden Finance Note: “Wagons Ho” is a traditional slogan, often associated with the pioneering era and exploration of the West.) This phrase is used to encourage drivers of ox carts or carriages to move forward, especially when they are trekking through difficult land or traversing undeveloped areas. This slogan means to move forward, to move on, and is often used to encourage large-scale travel or exploration. ）

The location where Bitcoin miners set up mining farms is important because, unlike many other industries that have factories or large headquarters, they are mobile.

Their location is based on factors such as regulatory regimes, electricity prices, and since Bitcoin devices generate a lot of heat, the average outdoor temperature needs to be considered. On this last point, here are the top 10 by average annual temperature:

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However, as climate change drives renewable energy, many Bitcoin miners are paying closer attention to where their electricity comes from. This may be why Canada’s hydropower resources are abundant, rising from less than 1% in 2019 to 6.5% at the end of 2021.

But considering that the top renewable energy countries such as Iceland, Paraguay and Norway collectively account for just over one percent of the global network, there is still plenty of room for growth in mining