April 22nd is Earth Day and since environmental sustainability is one of the key issues in the global debate around bitcoin mining, analysts say the industry has started to naturally gravitate towards cleaner and cheaper energy sources.
According to a January report from the Bitcoin Mining Council, by Q4 2021, the global bitcoin mining industry was running on an estimated 58.5% renewable energy.
The preference for clean energy is due to a combination of environmental awareness, political pressures and an interest in the bottom line. The result is a sea change that could have a ripple effect that extends beyond bitcoin (BTC) mining to power grid systems around the world.
Bitcoin miners in Norway are cleaner than almost anywhere else on the planet thanks to the country’s access to hydropower and other renewable energy. In fact, 100% of Norway’s electricity is generated from renewable energy.
Of the 157 Terrawatt-hours (TWh) of energy that Norway produces per year, 88% comes from hydroelectric power, and the rest from wind and thermal power.
Miners use that renewable energy to produce around 1% of the total Bitcoin hashrate.according to data from blockchain research firm CoinShares.
Mas Nakachi is CEO of Miami-based Bitcoin mining operation XBTO Group. Founded in 2015, XBTO’s mining operation produces over $25 million a year and claims to be entirely powered by renewable energy sources.
He believes that “hydropower is one of the most reliable renewable energy sources available to us”.
LWind power depends on the weather and solar power on daylight, but rivers can flow all day, and in several places water can be pumped uphill during off-peak periods, as a way of using excess energy for electricity. run generators when needed. Nakachi told Cointelegraph that:
“Harnessing hydroelectric power has continued to be an effective mechanism for keeping mining as efficient as possible.”
Although a study published in February in the journal Energy Research & Social Science concluded that “cryptocurrencies are unsustainable by design,” Nakachi believes that there is a simple path for mining operations to develop a model that is both economically and environmentally sustainable.:
“Prioritizing some form of clean energy to power the majority of operations is, in the long term, a sustainable model for the success of mining operations.”
As Cointelegraph reports, Another option being explored in Texas is the use of flexible data centers that can switch from the public grid to temporarily generating their own clean power from dedicated power generators. to relieve stress on the network during periods of high retail demand.
Tech entrepreneur and self-proclaimed environmentalist Daniel Batten described on the April 22 Brave New Coin podcast a multiple way in which the Bitcoin mining industry is creating positive change. Batten argued that bitcoin mining incentivizes the construction of renewable energy plants and helps decarbonize power grids..
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BREAKING: #BTC Mining can drive us to 70% renewables-based energy consumption by 2030.To say “#BTC mining is good for the environment” is like saying “the sun is warm”: a massive understatement. #BTCmining is our unexpected superhero. Here’s how.https://t.co/Arl1zZXTY6 pic.twitter.com/AleegYAbwM
— Daniel Batten (@DSBatten) April 13, 2022
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Latest: BTC mining may lead us to 70% renewable energy based consumption by 2030.Saying “BTC mining is good for the environment” is like saying “the sun is hot” – a massive understatement. BTC mining is our unexpected superhero. Here’s how.https://t.co/Arl1zZXTY6 pic.twitter.com/AleegYAbwM
Batten believes that bitcoin mining drives higher demand for electricity and therefore investments in renewable power plants.. Mining is suited to intermittent power sources and can easily be relocated to far-flung locations to take advantage of excess renewable electricity generation.
The only problem Batten sees is that the industry may not be large enough to incentivize all the renewable energy needed:
“My only real concern is ‘does bitcoin mining require enough electricity to help us build that network to the extent we need?’”
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