US leads Bitcoin mining followed by Kazakhstan and Russia: Cambridge Bitcoin Electricity Consumption Index – Times of India



NEW DELHI: The latest research done by Cambridge Bitcoin Electricity Consumption Index (CBECI) has thrown up interesting insights about global Bitcoin mining distribution, in the aftermath of China’s crackdown.
The CBECI data revealed that the US is leading Bitcoin mining accounting for 35.4 per cent of global mining. It is followed by Kazakhstan at 18.1 per cent and Russia at 11 per cent of the total mining.
The research has covered a period of 4 months from May to the end of August. The CBECI tracks the geographic distribution of computing power used for Bitcoin mining and provides an up-to-date estimate of Bitcoin’s daily electricity load.
CBECI is published by Cambridge Centre for Alternative Finance and analyses power consumption for mining by receiving data from various commercial Bitcoin mining pools.
CBECI further underscored the following important points about mining distribution and related environmental hazards:
* Bitcoin mining consumes 0.45 per cent of the world’s electricity production.
* China’s share in global Bitcoin mining came down to zero in July 2021 from 75 per cent in September 2019.
* The relation between geographical distribution of Bitcoin and the usage of renewable and non-renewable resources for mining can be analysed in future.
* Alex de Vries, the founder of Digiconomist blog and the co-author of the CBECI’s research report said that Bitcoin mining also produces huge electronic waste as the computers used in mining soon turn obsolete.
The rise of Bitcoin mining in the US and Kazakhstan highlighted the following facts:
* In the US, a substantial chunk of mining is based in areas like Washington, where low-cost power from hydropower is available.
* However, some Chinese miners have also moved to cheap electricity available in the deregulated power grids of Texas, BBC reported.
* Kazakhstan is also one of the countries that welcomed these mining companies post China’s crackdown.
* Since April 2021, Kazakhstan’s share in global crypto mining has more than doubled.
* Bitcoin mining in Kazakhstan is environmentally unsustainable as 87 per cent of its power comes from fossil fuels, of which coal accounts for 70 per cent of power generation. according to the US Department of Commerce.
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