While bitcoin detractors cite the high energy consumption of the bitcoin network as one of their main arguments against the digital currency, bitcoin miners are increasingly adopting green energy solutions to power their facilities, making the bitcoin mining sector sustainable. Moving towards becoming a leader in energy.
Read on to learn about the environmental concerns surrounding bitcoin mining and what bitcoin mining companies are doing to address these issues.
Bitcoin Mining and the Environment: What’s the (Alleged) Problem?
Bitcoin mining has been debated among environmentalists, policy makers, and tech enthusiasts. Some argue that it is a significant contributor to global warming, while others believe that it is not as big a problem as it has been made out to be.
so what’s the problem bitcoin mining and the environment?
First, let’s understand how bitcoin mining works. Bitcoin is a decentralized digital currency, which means that no government or financial institution controls it. Instead, transactions made with bitcoin are verified and recorded on a public ledger called the bitcoin blockchain. For this to happen, bitcoin miners solve mathematical problems using specialized computers to verify transactions. They earn newly minted bitcoins and transaction fees as a reward for their effort.
The perceived problem with bitcoin mining is that it consumes a large amount of electricity. By some (arguably dubious) estimates, the electricity consumed by bitcoin mining is equivalent to the annual energy consumption of small countries. It has claimed that bitcoin mining contributes significantly to global warming.
Is bitcoin really an environmental villain?
cambridge bitcoin power consumption index reports That bitcoin consumes 122.74 TWh annually, which is only 0.6% of the world’s electricity as of March 2023. Critics argue that bitcoin consumes more electricity than countries like Argentina, but fail to consider that bitcoin has more users than citizens of Argentina.
Bitcoin is not even among the top polluters as far as carbon emissions are concerned. You have to replace gold mining, air conditioners, the military-industrial complex, and aviation before even considering bitcoin’s carbon footprint.
Furthermore, while the carbon output of bitcoin has increased since 2018 due to its growing adoption, alternatives are already in development.
The reality is that most of the power used to mine bitcoin comes from renewable sources such as wind, solar, water and geothermal energy. In fact, a recent report from CoinShares estimated 74.1% of bitcoin mining is powered by renewable energy,
Why? Because bitcoin miners, especially in recent years, set up their operations in areas where electricity is cheap and abundant, often in areas with access to clean, renewable energy sources.
So, while there are legitimate concerns about the environmental impact of bitcoin mining, the perceived problem may be minor, some experts claim.
Most of the power used to mine bitcoin comes from clean, renewable sources, and many miners are taking steps to reduce their carbon footprint even further.
And since miners are looking to maximize bitcoin mining profits, they are always on the lookout for cheaper sources of energy. mining machinesA leader in innovation in sustainable energy solutions.
The Reality of Bitcoin Mining’s Move Towards Sustainable Energy
As the popularity of bitcoin has increased, so has the demand for its mining. And with that demand comes the need for energy to power the mining process.
In the past, this energy was often generated from non-renewable sources such as coal and natural gas in China, raising concerns about the environmental impact of bitcoin mining.
however, Bitcoin mining is moving towards sustainable energy, and it’s happening fast. Mining farms are now actively looking for ways to reduce their carbon footprint and transition to sustainable energy sources such as hydropower, wind power and solar power.
One of the main drivers behind this shift towards sustainable energy is the growing awareness of the environmental impact of conventional energy sources. The use of fossil fuels for energy production has contributed significantly to climate change, and the bitcoin mining industry is taking steps to reduce its contribution to the problem.
Another development is the rise of innovative technologies that make bitcoin mining more energy efficient. For example, the use of liquid immersion cooling technology can reduce energy consumption by up to 90% compared to traditional air-cooling methods.
The move to sustainable energy is not only beneficial for the environment, but it also makes economic sense for mining companies.
Renewable energy sources such as solar and wind power are becoming increasingly cheaper and more accessible, making them an attractive option for bitcoin miners. In fact, many mining companies are now located in areas where renewable energy is abundant, such as Iceland, where geothermal power is readily available.
Finally, the shift towards sustainable energy could potentially change the perception of bitcoin mining. The industry has been criticized for its high energy consumption and carbon footprint, but the adoption of sustainable energy sources could make bitcoin mining part of the solution rather than the problem.
With the adoption of renewable energy sources, innovative, energy-efficient technologies and global initiatives to promote sustainability, bitcoin mining is set to become more eco-friendly and cost-effective in the years to come.
5 companies making bitcoin mining more sustainable
Let’s look at some of the companies making bitcoin mining more sustainable.
Hive Blockchain Technologies
Hive Blockchain Technologies is a fast growing and sustainable bitcoin mining company. In March 2022, Hive Blockchain Technologies announced Partnered with Intel Corporation to purchase high-performance ASIC chips for inclusion in custom-built mining equipment for HIVE. They also plan to host 100 MW of mining capacity in a new Texas renewable energy data center facility by the end of 2023.
The real game-changer for the company is Intel’s blockscale ASIC, which is expected to be introduced in 2022. Intel Corporation has only made the chip available to a select few customers, and HIVE Blockchain is one of four global customers to receive it. The chip is advancing energy-efficient hashing for Proof of Work consensus using green energy, which aligns with HIVE’s sustainability goals and ESG focus.
With its ongoing commitment to sustainability, HIVE Blockchain Technologies is a company to watch in the bitcoin mining world.
Marathon Digital Holdings
Marathon Digital Holdings is not only one of the largest bitcoin mining companies in North America, but also one of the most sustainable. In 2021, the company announced plans to relocate its bitcoin miners to a facility in Montana with more eco-friendly and non-carbon-emitting sources of power.
Their goal was to achieve 100% carbon neutrality by the end of 2022, and in order to do so, Marathon took a strategic step to transition to more sustainable energy sources. CEO Fred Thiel said the company is committed to empowering its miners in a sustainable way. With most of their fleet already scheduled to be deployed at renewable energy facilities, it was the right time to move away from fossil fuels.
The transition to more sustainable sources of power is to happen gradually throughout 2022. This is a huge step forward in Marathon’s mission to create a better future for the environment and the bitcoin industry.
EZ Blockchain
EZ Blockchain is a bitcoin mining company founded in 2017 to provide hosting solutions for bitcoin mining data centers. Since then, it has transformed into a vertically integrated mining firm that controls every aspect of the power generation cycle. With offices in Los Angeles, Chicago, Houston and other cities across the US, EZ Blockchain provides mining infrastructure to energy businesses at the most affordable electricity prices.
The company aims to tackle the world’s energy waste problem using cryptocurrency mining. As an energy-focused technology firm, EZ Blockchain connects the digital asset sector with the energy industry to maximize energy efficiency by using bitcoin mining to tackle the wasted energy issue.
In 2018, EZ Blockchain began building mobile data centers that provide modular data centers at scale. These data centers are built for crypto mining and designed to run on cheap energy sources.
bitfarm
BitFarms is a sustainable bitcoin mining company that uses clean hydroelectricity to generate energy for its mining operations. The company’s nine facilities are located in the US, Canada and Paraguay.
By powering its mining operations with clean energy, BitFarms reduces its carbon footprint and helps make bitcoin mining more sustainable.
In 2021, Bitfarms raised CAD 155 million in equity, a testament to its commitment to sustainable bitcoin mining and its potential for growth in the years to come.
hut 8
Hut 8 is a veteran in the North American bitcoin mining sector, having started operations in 2018. As a firm of technology experts, Hut 8 advocates for decentralized systems that drive financial inclusion and stability.
Its commitment to clean energy sets Hut 8 apart, which is shown by its use of nuclear and hydropower to power all of its high-performance data centers in eight Canadian facilities.
With three data mining facilities and five multi-tier data centers, Hut 8 is equipped to handle a wide range of high-performance computing needs. The company serves over 400 commercial bitcoin mining customers and holds 6,115 self-mined bitcoins as of February 2022.
How Bitcoin Mining Could Be A Driver For Renewable Energy Solutions
Bitcoin mining has been controversial due to its perceived negative environmental impact. However, with recent developments, bitcoin mining could become a significant driving force for renewable energy solutions.
In recent years, the use of renewable energy sources, such as solar, wind, water and geothermal energy, has been increasing. These sources have become increasingly cost-effective, making them more Attractive to businesses and governments seeking to reduce their carbon footprint. Bitcoin mining companies have taken note of this trend and are actively and increasingly moving towards renewable energy sources.
Bitcoin mining can act as a driver for renewable energy solutions as it creates demand for renewable energy and encourages investment in the development of renewable energy infrastructure. Bitcoin mining is a 24/7 operation, requiring a constant energy supply to keep the network running. This energy supply can be met from renewable sources, which can provide a stable supply of electricity over the long term.
As bitcoin mining continues to grow, it could drive innovation in the renewable energy sector. The need for efficient and cost-effective energy sources to power bitcoin mining may lead to the development of new technologies and solutions, such as Intel’s Blockscale ASIC chips. These innovations can be applied to other industries, allowing for widespread adoption of renewable energy sources.
Furthermore, developing renewable energy solutions for bitcoin mining could also help bring electricity to remote areas where traditional power sources are unavailable or unreliable. This can have a positive impact on local communities, as it can create jobs and spur economic growth.
In the past, sustainable energy has struggled to keep pace due to a lack of funding. But with the huge capital-raising potential of the bitcoin market, this could be the final push that sustainable energy really needs to kick off. Therefore, not only is bitcoin mining benefiting from the shift towards green energy, it is also helping to accelerate the development of sustainable energy solutions.