Hydropower Takes Lead as Main Energy Source for Bitcoin Mining

Hydropower has become the dominant energy source for Bitcoin mining, surpassing natural gas according to recent data from the Cambridge Centre for Alternative Finance. The shift towards low-carbon energy sources is significant, with hydroelectric power now accounting for 59.4% of the network's total electricity mix.

This marks a major milestone for the proof-of-work mining industry, which has faced criticism over its reliance on fossil fuels. The expansion of hydroelectric capacity, driven in part by mining operators moving to water-rich regions like East Africa, has allowed the network to accelerate its transition towards renewable energy.

Despite rising overall power consumption, total greenhouse gas emissions have only increased by 20% due to improvements in energy-mix efficiency. Annualized electricity demand for the Bitcoin network climbed to approximately 190 terawatt-hours (TWh), a 38% increase over an 18-month period.