1. The role of Bitcoin
First of all, what is Bitcoin’s role in our world? And does this justify the amount of energy it consumes? At this point, the role of Bitcoin can be a bit unclear. This is mainly because the network is still young. This is why there is uncertainty about what role it can and will fulfill in the future.
Will Bitcoin stay the internet money only nerds use, or will it become the new global reserve currency? Looking at the adoption trend of the cryptocurrency, one may conclude that Bitcoin is heading towards fulfilling a more serious role in our global economy.
In the latter case, Bitcoin could partly replace our financial system. Our current monetary system consumes a lot of energy in offices, systems, and logistics, among other factors. Bitcoin replacing this partly by doing the same processes more efficiently would positively impact the energy consumption of the financial industry as a whole.
2. Bitcoin mining is driving green energy
Green energy is more and more abundant worldwide. As a result, the supply of sustainable energy sources grows, but the electricity demand is not always the same. Especially during times when the demand is low, the price of this electricity can become cheap. But overall, the prices of clean energy are becoming cheaper as the supply grows.
Bitcoin mining is all about efficiency and making a profit that way. In other words, the cheaper the electricity, the better. This means that logically, miners will lean towards using green energy sources. The effect is that green energy sources can become more financially viable, stimulating innovation and expansion further.
According to the Bitcoin Mining Council, 58,4% of the electricity bitcoin miners use worldwide is already generated by sustainable sources. Furthermore, this development is on an upward trend and is expected to grow further in the coming years.
3. Bitcoin mining mobility offers solutions
Finally, the mobility of mining machines offers many solutions. Combining this mobility and the potential profitability helps oil rigs, for example, with a problem they have had for a long time. When drilling oil, gas is a byproduct. Usually, this gas was flared or even dumped in the environment as it was just economically unprofitable to transport it to be used to generate electricity.
However, miners are now on-site helping to convert the gas into electricity on the spot. This is done with highly effective machinery that can burn the gas more completely, meaning the harm this gas does is much lower than when it would be burned in a big flare.
According to researcher Daniel Batten, implementing bitcoin miners this way can positively impact global emissions. He concluded that by 2045, miners could eliminate 5,3% of all global emissions!
Discussion about bitcoin mining is healthy
Talking about the energy consumption of bitcoin mining is good and helps the crypto industry grow as a whole. Both the positive and negative impacts should be appropriately discussed to solve problems and emphasize the good impacts this new technology may have.
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