According to Cointelegraph: With the upcoming Bitcoin halving, there could be a shift towards sustainable energy sources for Bitcoin mining as miners seek to optimize capital efficiency. The halving will see Bitcoin block rewards reduced from 6.25 BTC to 3.125 BTC. With the continual increase in the Bitcoin hash rate, mining profitability may decrease, driving miners to explore more cost-effective means such as renewable energy, according to Matteo Greco, research analyst at Fineqia International.
Bitcoin's reputation has suffered due to its significant energy consumption and dependency on fossil fuels. However, since the start of 2024, over 54.5% of Bitcoin's energy consumption is said to be powered by renewable energy sources, according to the Bitcoin ESG Forecast.
China, a known powerhouse in Bitcoin mining, is also making strides towards greener Bitcoin mining even in the face of a nationwide ban on the activity. Despite the prohibition, China presently contributes around 15% to the global Bitcoin hash rate, with a majority of miners using hydroelectric power, which is abundant and affordable during the region's wet months, according to Daniel Batten of CH4 Capital.
The report also notes that several retail Bitcoin miners are operating at a loss, primarily using the process as a means to convert Chinese yuan to U.S. dollars, indicating interest in cryptocurrency mining beyond just profitability.