1/ @CoinSharesCo just published the latest update in our #bitcoin mining research series: medium.com/coinshares/an-…
If you read no further, we show that #bitcoin mining is predominantly powered by #renewables, with a lower bound of 78% renewables penetration vs the 18% global avg.
If you read no further, we show that #bitcoin mining is predominantly powered by #renewables, with a lower bound of 78% renewables penetration vs the 18% global avg.
2/ Huge thanks to Three Body Capital, @nic__carter, @danheld and @GarrickHileman for contributions, review and suggestions. For a full look at the report, you can find it here: coinshares.co.uk/bitcoin-mining…
3/ The report is a follow-up on our last one, published in May, where we introduced some new methodologies for calculating the overall power draw of the #bitcoin mining network and calculated market average all-in creation costs. medium.com/coinshares/re-…
4/ At the time of the May report, the network was hashing at approximately 30 EH/s and we estimated the market average all-in creation costs at ¢5/kWh and 18-month depreciation schedules to be approximately $6,500.
5/ This time around the hashrate is approximately 40 EH/s, having topped out around 55 EH/s in late September. Under the same assumptions, we estimate that the creation costs have increased to $6,800. The cash-cost component of that at an 18-mo. depreciation schedule is ~$3,400.
6/ In order to unpack the concepts of all-in versus cash-cost in #bitcoin mining I wrote a Medium post discussing the creation cost dynamics as well as their effects on the network. medium.com/coinshares/an-…
7/ One of the key takeaways from that post is that it is the cash-cost breakeven level, -not- the all-in breakeven level, that matters in terms of miners calling quits and pulling the plug on equipment.
8/ We are currently near the cash cost level and the recent drop in hashrate suggests that we've been above it during the recent price fall, causing a significant amount of mining gear to be removed from the network.
9/ I go on to discuss how price doesn't follow hashrate, and never did. It's the other way around as only increased prices can pay for additional hash power. I'm sorry @maxkeiser, but unless I am missing nuances in your argumentation, I think you've got this one wrong.
10/ Finally, and this is something I will discuss in detail in another Medium post next week, we show that contrary to popular narratives, #bitcoin mining is predominantly powered by #renewables. It has a lower bound of 77.6% renewables penetration vs. an 18.2% global average.
11/ By inference, that makes #bitcoin mining one of the cleanest industries on the planet, a far cry from the dubious claims put forward by less researched, and more opinion-based sources such as @DigiEconomist. Journalists take note.
