Kazakhstan was at its peak. Second largest Bitcoin mining nation on earth. Then, within a year, he surrendered. While mainstream news commentators were quick to point out the reasons. Kazakh authorities crack down on Bitcoin mining operations.the result was unreported when the network was green.
But since Kazakhstan is 87.6% fueled by fossil fuels, less mining there means a cleaner energy mix for the Bitcoin network.
how high
That’s what I asked myself. And the response was surprising.Source
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At its peak in October 2021, Kazakhstan enjoyed 18.3% of the global hash rate.
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But what is not widely reported is that as of January 2022 (the last time it was updated by Cambridge University). Bitcoin mining map), it had already fallen to 13.2 percent of the global hash rate.
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And that was before the Kazakh authorities put real pressure on the miners. This pressure came in three waves:
- A raid where equipment was seized from 13 illegal mining farms. Operations were anticipated. Consuming more than 200 megawatts (MW) of electricity.
- A follow-up raid on remaining known illegal mining activities led to the seizure of assets. Another 106 mining operations.
- Regular mining deduction. Bitcoin mining can now only be done legally during off-peak hours. midnight to 8:00 a.m. and on weekends: Reduced from 168 mining hours per week to only 64 mining hours per week.
Running some calculations, even at the upper threshold of the fastest boom, Kazakhstan now represents a cool 6.4% of the global hashrate.
So, what does this mean for Bitcoin’s clean energy mix?
As you can see it makes a pretty significant difference. Exports from Kazakhstan have flipped the grid and become the majority of clean energy users. I ran a simulation on mine Energy source model With Kazakhstan still at 18.3% of the global hashrate. It looks like this: too much use of fossil fuels.
Because Kazakhstan uses so much coal (a heavier greenhouse gas emitter than natural gas), the difference in emissions is even more significant. At 18.3% of the total hash rate, Bitcoin would have emitted 36 metric tons of carbon dioxide equivalent C(MTCO2e). But at current levels, emissions are only 32.4 MtCO2e. This is a 10% reduction in emissions.
A ten percent reduction in emissions is significant. There are few industries in the world that have achieved this feat within a year. And if there were, you would have heard all about it.
An important side note: Have you ever seen a Bitcoin mining unit with its own internal combustion engine? Neither I. Bitcoin mining, like electric vehicles (EVs), uses electricity as its power source. Thus, if an EV can claim zero emissions, so can Bitcoin mining. So, when we talk about emissions, we are talking about indirect emissions caused by electricity components that were produced using fossil fuels.
In summary: The Bitcoin network continues to track in the right direction, but you’ll have to dig to find out.
And some final thoughts about where we’re going:
According to my model, the Bitcoin network now uses 4.7% more clean energy than it did just a year ago. Factors leading to this are:
- Departure from Kazakhstan
- Migration of Marathon’s remaining coal-based mining on renewable supply
- Continued migration to off-grid mining, mostly based on renewables
This trend shows no sign of abating. Based on the trendline, the network is set to use. 4% more clean energy every year for the next three years.
As far as I know, this is the fastest rate of transition to renewables of any industry in the world.
This is a guest post by Daniel Beaton. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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