Green Energy: A solution to Huge Mining Energy Consumption?

Study shows that Bitcoin mining accounts for 0.19% of a carbon footprint on a global level.

Bitcoin mining energy consumption has always been a topic of discussion for environment lovers, and it increased after China’s mining ban.

And as the concerns increase about the increased energy consumption, more and more entities started to think about using renewable sources for mining operations.

According to a recent study, Bitcoin mining accounts for a global carbon footprint of 0.19%. And apparently, the energy consumption that it does can be enough for a whole country. And data shows that as of February 2022, Bitcoin mining consumed total energy of 200 terawatt-hours.

One of the primary reasons that mining operations surged can be considered is China’s ban on Crypto and mining. Until 2021, China used to be a hub for Bitcoin mining and accounted for around 75% of the Bitcoin hash rate and 44% of crypto miners.

But China primarily depended on coal and utilized renewable hydropower to mine crypto, which facilitated in lowering the overall energy consumption. And when the country imposed a ban, the miners had to escape to countries like Russia and Kazakhstan, where using renewable sources was not really an option; hence this factor raised the Bitcoin mining carbon emission by around 17%.

The solution to this might be to turn your heads to renewable energy sources. In Fact, Centibillionaire Elon Musk often takes to his Twitter account to highlight his thoughts and opinions. He often called out to miners signifying the importance of switching to renewable sources for carrying out mining.

Last year, the Tesla CEO announced that the North American Bitcoin miners have agreed to commit to renewable sources via his official Twitter account. And following this, a few months later, he tried to positively influence the community by highlighting that he would allow Tesla to resume Bitcoin transactions when fifty percent of the mining activity is carried out using a clean energy source.

Then there are other entities like Capstone Green Energy, which entered into an agreement with an end-user customer in the cryptocurrency mining sector in January this year with a two-year term rental contract with the corporation. The mining operations would get 4 megawatts of clean energy.

Another one is the Costa Rican hydropower plant that also transformed into a green Bitcoin mining plant last month.

A study signifies that traditional energy firms are getting more inclined towards Bitcoin mining, as investing in renewable sources that can be used for Bitcoin mining are a great investment opportunity for them.

Although some Scandinavian countries have distinct opinions, as they believe that renewable energy sources should be utilized in required fields that cause the most considerable environmental damage.

Even though green energy seems to be the solution, its adoption on a global level is a thing to be achieved. And maybe folks would be a bit less skeptical when the majority of mining operations are carried out by renewable sources.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing