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- 1 Bitcoin mining and energy and environmental concerns were usually treated as two different extremes.
- 2 The recent report, however, sheds light on the balance of both the ‘extremes’ in a complimentary manner.
- 3 It suggests how crypto mining operations, if used and applied properly, can result in saving the environment, rather than damaging it.
A recently released report from the IRM Energy and Renewables Group (GIS) explored the role of Bitcoin miners in addressing the challenges with energy consumption worldwide. The report included potential contributions of crypto mining to climate change mitigation, renewable energy adoption, nuclear power viability, Ocean Thermal Energy Conversion (OTEC), heat recovery, and the utilization of geothermal and hydroelectric energy sources.
Additionally, the report titled “Bitcoin and the Energy Transition: From Risk to Opportunity” discusses the growing trend of vertical integration between energy infrastructure and Bitcoin mining. The authors of the report, Dylan Campbell and Alexander Larsen showed the positive side of increasing mining activities.
The SIG report noted that the integration of intermittent renewables into the grid has raised concerns about grid frequency stability. To tackle this, grid operators are looking into solutions like Bitcoin miners, which can help stabilize the grid through flexible energy demand.
Furthermore, it stated that Bitcoin mining can contribute to combating global warming by utilizing stranded gas and captured methane from various sources. This aligns with climate change mitigation goals, despite criticisms of its energy consumption.
The Bitcoin mining community is actively promoting sustainability by embracing solar and wind energy, which can accelerate the adoption of renewables, benefiting the environment and the economy. Nuclear power, a low-emission energy source, faces economic challenges. Bitcoin mining can support nuclear power plants by purchasing excess electricity, thus improving their economic viability.
Ocean Thermal Energy Conversion (OTEC) is a sustainable alternative to intermittent renewables. Combining Bitcoin mining with OTEC can reduce costs, making it attractive for coastal regions and island nations. Bitcoin mining generates heat that can be repurposed for heating homes, water, and greenhouse conditioning, enhancing profitability while reducing waste.
Geothermal and hydroelectric sources have potential but face infrastructure challenges. Bitcoin mining can effectively utilize these sources, providing reliable electricity and offsetting development costs.
A trend toward vertical integration between energy infrastructure and Bitcoin miners is emerging, paving the way for a sustainable, energy-abundant future by optimizing energy supply and meeting rising energy demands.
Bitcoin’s role in the energy sector extends beyond energy consumption criticism. It offers innovative solutions to provoking energy challenges like grid stability, methane emission reduction, renewable energy adoption, nuclear power support, OTEC development, heat recovery, and utilization of geothermal and hydroelectric sources.
The convergence between Bitcoin mining and energy infrastructure signifies a promising shift towards sustainable energy solutions. As the world strives to meet growing energy demands and promote human development, Bitcoin’s contribution to optimizing energy supply is increasingly recognized.
The report calls for a shift in the narrative from highlighting risks to embracing the opportunities Bitcoin presents in advancing sustainable energy solutions.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
