As a reminder, cryptocurrency mining involves the use of computing equipment to solve complex problems using hash functions. The task is to find a solution that would allow a new block to be added to an existing blockchain, and thus cryptographically fasten them together. The finder of the block is rewarded with new coins, which motivates hardware owners to spend their resources on the process.


At the same time, the miners guarantee the security of the network, as the more participants in the process, the harder it is for an attacker to theoretically change anything in the blockchain.

Overall, the interest of miners in cryptocurrency mining is growing. For example, this is a graph of the hash rate over the last year. The big dip on it is the period of China’s coin mining ban. However, the figure itself is increasing and going towards new records.

Bitcoin network hash rate graph

Bitcoin’s main drawback

Here’s a quote from Steyer, published by news outlet Decrypt. In it, the billionaire shares his perspective on the current situation.

The Bitcoin network is a major consumer of electricity. Much of it, however, comes from burning fossil fuels – a process that emits large amounts of dangerous gases and toxins, that’s the problem.

Billionaire Tom Steyer

With the Bitcoin network’s hash rate steadily increasing, miners only have to build up their capacity to make a profit. This means that increased energy consumption is inevitable in the future, but its impact on the environment can still be minimised by switching to renewable sources of resource, the billionaire is confident. He continues.

If we “completely cleaned up” electricity generation without harming the environment – so that Bitcoin mining using a huge amount of the resource only wastes clean electricity, and the health of the planet would not deteriorate in any way – everything would be fine.

That is, the expert suggests that the situation can still be changed for the better. However, this will require efforts of the industry participants who put profit, not ecology, in the first place. However, as miners move from China, the use of renewable energy for BTC mining is increasing, at least from this point of view, experts say.

The billionaire also stated that he received an offer to invest in a mining centre which would run on electricity from a coal-fired power plant. The offer, of course, was rejected.

The idea is that coal would not have to be transported for a long time and thus a lot of savings could be made on electricity generation. This situation creates an opportunity for large profits, but it is a real disaster for the environment.

Bitcoin’s energy consumption growth rate over time

Unfortunately, the cryptocurrency is still a long way from a complete switch to renewable energy. According to experts at Cambridge University, only 39 percent of the Bitcoin network’s hash rate is powered by green electricity. That is, the annual energy consumption of BTC mining is now equivalent to burning 27 billion kilograms of coal.

Note that information on the potential environmental harms of mining varies widely from source to source. For example, according to the Coinshares platform, more than 77 per cent of the hash rate is powered by green electricity. But this information does not inspire confidence, as Coinshares makes money from the crypto market and is interested in its best image among large investors. Therefore, there is a possibility that in reality the numbers are noticeably lower.


We believe that such talk and criticism of Bitcoin mining is hardly fair, as other areas like construction are much more polluting. Accordingly, the world has other problems besides mining. However, the trend towards clean energy sources is clearly worth it and is sure to intensify in the near future. And that will have a good effect on the reputation of coins.


Look for even more useful information in our Millionaire Crypto Chat. There, we’ll talk about Bitcoin’s energy consumption and learn how to mine it at the same time.