The University of Cambridge has just published its 3rd report on the “cryptoassets” industry around the world. This report examines changes that have occurred in the industry since the release of the 2018 report. It is based on data collected from 280 companies in 59 countries and examines four market segments: exchanges, payment, asset custody, and cryptocurrency mining.
The report thus reveals that the cryptocurrency mining industry is still largely dominated by Bitcoin. The cost of energy represents today 55% of the expenses of the miners, the rest being absorbed by the cost of the material and the infrastructures. There would however be great disparities according to the geographical areas considered. Material expenses are indeed much lower in China than in other countries, particularly those where importation is heavily taxed such as some South American countries. In contrast, the Latin American countries have the lowest median for the price of electricity (0.025 USD / kWh). The competitive advantage of regions such as Sichuan or Yunnan province in China is only seasonal especially when the rainy season ends.
Overall, cryptocurrency mining activities consume 39% of renewable energy (mainly hydroelectricity). This share would be 29% for bitcoin mining.
