What Powers China's Crypto Mining Industry, and Is It Sustainable?

The cryptocurrency mining industry continues to grow daily, supported by a continuous stream of new and more efficient hardware.

The 2nd Annual Cryptoasset Benchmarking Study released by Cambridge University estimates that only 28% of crypto mining energy comes from renewable sources.

Since Chinese mining farms contribute to approximately 60 to 70% of this energy consumption, the country is a key talking point in any discussion regarding the sustainability of cryptocurrency mining.

As mining has become more expensive over time, Bitmain has launched the World Digital Mining Map to help mining firms around the world find the most affordable areas to operate.

As a result, major Chinese mining firms began looking abroad for countries that offered similarly affordable electricity, with industry leader Bitmain recently launching a 50MW Bitcoin mining farm in Texas, dubbed the largest in the world.

Last week, the NDRC decided to remove crypto mining from the potential ban list following a call by Chinese President Xi Jinping for the country to embrace blockchain technology.

Can cryptocurrency mining in China remain profitable while also conforming to environmentally sustainable energy requirements?

Sometime around mid-May 2020, the block reward for mining Bitcoin will be automatically reduced from 12.5 BTC to 6.25 BTC, decreasing the profits associated with mining.

So long as affordable electricity is available, mining of Bitcoin will continue unabated - whether in China or elsewhere.

For Bitcoin to emerge unscathed, both mining equipment and energy sources in China will need to become greener and more efficient.