A while ago, Tesla CEO Elon Musk raised some concerns regarding the impact of Bitcoin mining on the environment. This caused the company to withdraw its option of accepting BTC as payment for its vehicles.
Since then BTC miners have come up with more environment-friendly solutions. The construction of a volcano-powered mining facility in El Salvador and the shutting down of mining operations in China have somewhat contributed to this.
Now, according to new data revealed by Cambridge University, approximately 17% of all Bitcoin mining is handled in North America. Around 50% of this is done by using renewable energy sources. This has caused BTC mining operations to be friendlier to the environment, which is expected to work out in the favor of the flagship crypto asset.
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How Has China’s Crackdown Benefitted Bitcoin?
Bitcoin’s hash rate took quite the hit and went down 65% between May 13th and June 28th. The leading cause was the shutting down of mining facilities by the Chinese authorities. This caused a majority of miners to migrate to other countries that are crypto-friendlier. Most of the miners reportedly settled in the North American region, while some also migrated to Texas.
While many were concerned about the impact of China’s crackdown on Bitcoin, others believed it to be the best thing for the flagship crypto asset.
Settling in crypto-friendlier countries has helped the miners in mining BTC with renewable energy sources. Mike Colyer, CEO of Foundry, also considers this a positive indication for Bitcoin and stated:
“Miners around the world are looking for stranded power that is renewable. That will always be your lowest cost. Net-net this will be a big win for bitcoin’s carbon footprint.”
Mining crypto assets is now better for the environment as compared to when the mining facilities were set up in China. The outdated and less energy-efficient mining equipment that was previously being used in China has also been permanently shut down.
Miners are now using other energy sources including:
- Gas flare energy
Does it Impact Bitcoin’s Value?
At the moment, nothing can be said with certainty regarding the relationship between the eco-friendly mining of Bitcoin and its value. The crypto market has seen quite some ups and downs in the past month.
The price of Bitcoin was briefly below $30,000 and is now back at $30,928 (at the time of writing).
Therefore, the impact that eco-friendly mining operations can have on the price of BTC is yet to be seen in real life.
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