Transition to Green Energy in Bitcoin Mining Process and China’s Role

One of the important events in the cryptocurrency market, Bitcoin halving, leads miners to sustainable energy sources by halving mining rewards. This situation causes mining companies to develop new strategies in terms of both profitability and energy efficiency. At the same time, Bitcoin’s high energy consumption and criticism for the use of fossil fuels also bring pressure to increase the use of renewable energy in the sector.

Transition to Renewable Energy

Researcher Matteo Greco notes that this new era in Bitcoin mining pushes miners to search for cheaper and more sustainable electricity sources. It is expected that a large part of the energy consumption will be provided from renewable sources. In particular, according to Daniel Batten’s research, it is expected that more than 54.5% of Bitcoin’s energy will come from renewable sources by the end of 2024. This can increase the efficiency of the mining mechanism and lead to a more sustainable structure.

China’s Impact on the Mining Sector

Despite the ban on Bitcoin mining, China continues to account for approximately 15% of the global Bitcoin hash rate. Miners in China, especially during the rainy seasons, benefit from hydroelectric energy. In addition, as Batten pointed out, individual miners in China are conducting Bitcoin mining to convert Yuan to USD to be able to exit the financial system.

Useful Information

– Bitcoin halving redirects miners to energy efficiency and renewable resources by halving mining rewards.
– By the end of 2024, more than half of Bitcoin’s energy consumption is expected to be from renewable energy.
– Miners in China use hydroelectric energy during rainy periods to reduce energy costs.
– Individual miners in China are turning to Bitcoin mining to convert Yuan to USD for economic reasons.

These developments can be considered as important steps to increase the sustainability of Bitcoin mining and make energy consumption more efficient. In addition, China’s role and strategies within the cryptocurrency ecosystem continue to have an impact on global markets.