April 22 is celebrated as “World Earth Day “. Environmental sustainability remains a major problem associated with Bitcoin mining. On the occasion of Earth Day 2022, many crypto pundits believe the sector has begun to naturally move towards cleaner and cheaper energy sources. According to a January analysis by the Bitcoin Mining Council, the worldwide bitcoin mining industry will be powered by 58.5% renewable energy by Q4 2021.
According to statistics from blockchain research firm CoinShares, miners use renewable energy to create around 1% of the total Bitcoin hashrate.
On the April 22nd edition of Brave New Coin, Daniel Batten, a tech entrepreneur and self-proclaimed environmentalist, presented a multi-pronged approach through which the Bitcoin mining sector is creating good impact.
According to Batten, bitcoin mining incentivizes the construction of renewable energy facilities and aids in the decarbonization of power networks.
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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
He stated that the main issue is that the crypto industry may not be large enough to incentivise all of the renewable energy required:
“My only real concern is, ‘Is Bitcoin mining requiring enough electricity to help us build up that grid to the extent we need to?’”
He emphasised that Bitcoin mining stimulates greater demand for power. Due to which, Bitcoin miners are willing to invest in renewable energy facilities. Mining is well-suited to variable power sources, and it can be quickly relocated to remote locations to take advantage of surplus renewable energy output.
Mas Nakachi is the Managing Director of XBTO, the Bitcoin mining business of the Miami-based XBTO Group. Founded in 2015, XBTO’s mining business earns more than $25 million per year and claims to be entirely powered by renewable energy sources.
According to Nakachi:
“Hydropower is one of the most reliable renewable energy sources available to us.”
In February research published in the journal Energy Research & Social Science stated that “cryptocurrency is unsustainable by design,” Nakachi believes there is a straightforward avenue for mining operations to establish an economically and ecologically sustainable model:
“Prioritising some form of clean energy to power the majority of operations is, in the long term, a sustainable model for successful mining operations.”
Another solution followed by Bitcoin miners in Texas is the use of flexible data centres that may temporarily switch from the public grid to producing their own clean energy from specialised energy generators to reduce grid stress during moments of high retail demand.
Bitcoin miners are preferring green energy owing to a mix of environmental concerns, political pressures, and a focus on the bottom line. However, these changes might have far-reaching consequences beyond Bitcoin (BTC) mining, affecting electrical grid systems all across the world.
