The top 10 countries for Bitcoin mining, spearheaded by the U.S., Kazakhstan, and China, and their renewable energy distribution. Notably, only China, Canada, Germany, and Ireland surpass the global average of 30% renewable energy in their electricity mix.
Bitcoin miners are estimated to consume a substantial 348 terawatt hours of electricity annually. As the world transitions toward renewable energy sources, the question arises: where does Bitcoin source its electricity from?
To address this query, we collaborated with HIVE Digital to visualize data from the Cambridge Centre for Alternative Finance and Ember, a climate-focused energy think tank, to scrutinize the electricity profile of the Bitcoin network.
This piece serves as the initial segment in our "How Eco-Friendly is Bitcoin?" series, delving into the sustainability of this cryptocurrency.
The Bitcoin Worldview
The top 10 nations in Bitcoin mining constitute a staggering 93.8% of the entire network's computational power, as measured by hashrate. The United States, China, and Kazakhstan rank as the top three, collectively hosting nearly three-quarters of the network by the conclusion of 2021.
Country Hashrate (%) Renewable (%)
United States 37.8% 22.5%China 21.1% 30.2%Kazakhstan 13.2% 11.3%Canada 6.5% 69.7%Russia 4.7% 18.5%Germany 3.1% 43.0%Malaysia 2.5% 19.1%Ireland 2.0% 38.6%Singapore 2.0% 2.4%Thailand 1.0% 15.5%Rest of the World 6.3% 30.1%
Source: Hashrate (%): Cambridge Centre for Alternative Finance as of December 2021; Renewable (%): Ember as of 2022.
China formerly held the primary position in Bitcoin mining, accounting for up to 75% of global capacity. However, a government crackdown in the summer of 2021 swiftly reduced its share to zero within a few months. Numerous miners shifted to neighboring Kazakhstan, attracted by economical electricity, lenient regulations, and a relatively stable political environment, while others migrated to the United States. In China, a significant covert mining scene has also resurfaced following the initial turmoil.
The bottom tier of the top 10 includes Ireland, Singapore, and Thailand, collectively hosting 4.9% of the network. Ireland's reported share, similar to Germany in sixth place, is believed to be an overstatement, potentially stemming from miners in other countries concealing their actual locations.
The Significance of Renewable Energy
On a national scale, the United States, China, and Kazakhstan reported renewable energy shares of 22.5%, 30.2%, and 11.3%, respectively. For context, renewables constituted 30% of global electricity generation in 2022 (excluding nuclear power).
Kazakhstan's low renewable energy share can be attributed to its heavy reliance on coal (60%), a significant export for this central Asian nation. In contrast, although coal also accounts for a considerable portion of China's electricity production (61%), their overall renewable energy share is higher, owing to their rapid expansion of wind and solar power.