Progress towards green Bitcoin mining? Yes! Despite regulatory challenges, significant progress has been made. Is Bitcoin environmentally friendly yet? No, but its carbon emissions have been reduced. According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin’s greenhouse gas emissions have decreased from 59 metric tonnes of CO2 in October 2021 to 48.88 metric tonnes today.
Parliamentarians are focusing on the proof-of-work mechanism and are pushing for environmentally friendly Bitcoin mining.
Bitcoin’s increasing energy consumption has faced criticism from environmental groups. However, history has shown that emerging technologies initially face scepticism. For example, Western Union’s memo in 1876 stated that “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” This sentiment is similar to the current criticism of Bitcoin. It is not surprising that bitcoin may become the standard for future currencies.
Here are some sustainable energy options for powering the best crypto coins mining operations.
As the most abundant form of renewable energy, solar energy harnesses the power of the sun. It is not limited to specific locations like hydropower and can be used anywhere on Earth. It is estimated that only 1.5 hours of solar energy that reaches the Earth’s surface can meet the world’s energy needs for an entire year.
Solar energy is the fastest-growing renewable energy source with an annual average growth of 33%. It is expected to be the main growth sector in the future. Solar infrastructure will be more widely available as installation costs decrease – the cost of energy is expected to decrease by between 15 and 35% by 2024.
This is the most abundant form of renewable energy that can be found globally. Wind energy is one of the cheapest renewable energy sources, costing $.01 to $.02 per kilowatt-hour. It is considered to be a green energy source with no associated greenhouse gas emissions. With growing infrastructure, capacity and job creation 16 836 MW of wind capacity was installed in the US in 2020. Its footprint is 40% smaller than natural gas and 90% smaller than coal
Hydropower is a cheap and abundant energy source that is harnessed from rivers, streams and bodies of water. It is a predictable energy source and one of the least expensive at $.04 per kilowatt-hour. Hydropower is efficient, converting up to 90% of captured energy into electricity. A total of 71% of renewable electricity generated today is from hydropower
Heat stored in the Earth’s crust can be converted into geothermal energy. It is estimated to produce 50 000 times more energy than oil and gas resources. Geothermal energy is location-restricted and is found in areas where Earth’s crust allows for energy release such as tectonic plates.
The discussion surrounding energy consumption by blockchain and crypto assets often oversimplifies the issue, missing crucial layers that require closer examination. It is true that these technologies consume a significant amount of energy but what is often overlooked are the reasons behind this usage and the sources of energy.
Like any business enterprise, crypto requires energy, but the benefits it provides outweigh the costs incurred. The conversation should shift towards a more nuanced understanding of the energy consumption in this industry