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

One of the important events of the cryptocurrency market, Bitcoin halving, leads miners to sustainable energy sources by cutting mining rewards in half. This situation causes mining companies to develop new strategies in terms of profitability and energy efficiency. Also, criticism of Bitcoin for its high energy consumption and fossil fuel usage creates pressures to increase the use of renewable energy in the sector.

Transition to Renewable Energy

Researcher Matteo Greco states that this new period in Bitcoin mining leads miners to search for cheaper and more sustainable electric sources. It is expected that a large part of energy consumption will be provided from renewable sources. According to Daniel Batten’s research, by the end of 2024, more than 54.5% of Bitcoin’s energy is expected to come from renewable sources. This situation can increase the efficiency of the mining mechanism and lead to a more sustainable structure.

Impact of China on the Mining Sector

Despite the prohibition of Bitcoin mining, China continues to account for approximately 15% of the global Bitcoin hash rate. Miners in China especially benefit from hydroelectric power during the rainy seasons. In addition, individual miners in China do Bitcoin mining to convert Yuan to USD during the period of Yuan exit from the financial system.

Useful Information

– Bitcoin halving directs miners to energy efficiency and renewable sources by cutting mining rewards in half.
– By the end of 2024, it is expected that more than half of Bitcoin’s energy consumption will be provided from renewable energy.
– Miners in China use hydroelectric power in the rainy seasons to reduce energy costs.
– Individual miners in China are turning to Bitcoin mining for economic reasons and converting Yuan to USD.

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