Bitcoin Mining Energy Consumption: Why Worry About It?
The statistics about the current bitcoin mining energy consumption is startling. It is on an equal level with the total amount of electricity used by Ireland each year.
At Cloudfaremine, we pay particular attention to this. We are now ten years into the crypto-era. And as it matures, its energy demands are only increasing. But you would expect that of any developing economy. The energy demands of bitcoin mining today provide proof of three things. These include work, immutability, and consensus within a decentralized network. And are the vital three-ingredient cocktail that helps make blockchain technology operate.
This sector is not using electricity to share memes and post status updates. Instead, it uses energy to improve value exchange and money in the world. There is positive momentum behind blockchain technology. And that even though it is still in a stage of development. It is comparable to the modern internet’s proliferation. But nobody knows how far it will go, so only the best ideas will define its future.
Moreover, bitcoin mining chips have become more powerful each year. Although not to the point that it no longer uses electricity in excess. But I am not concerned about bitcoin mining energy consumption. And I do not believe you should be too.
Reasons Why You Should Not Worry about Bitcoin Energy Consumption
- The mining industry is quite dynamic
Bitcoin mining companies need not to stay near civilization. They do not have to only exist in a specific location. But they can carry their usual activities anywhere. At least, as long as they have an internet connection and electricity. Yet, the mining sector associates with places with excess natural energy. Examples are places with enough wind and solar power. And then, they will use these to operate their mining activities
- Energy use, if it is renewable, is not a bad thing in itself
Hydropower, Solar, Geothermal, and Wind. Thanks to these, there is so much energy available in the world. Bitcoin mining facilities often show up in locations offering these resources in excess. And thus, operators push their electricity bill towards zero. For instance, at cloudfaremine, we recommend working from colder climates. These need very little energy to keep the machinery running at the best temperature.
- Research shows that mining leads to renewable energy funding.
Bitcoin companies not only subsidize the acceptance of their products by using renewables. But emerging technologies are bound to become more efficient as they grow.
Dr. Katrina Kelly-Pitou published an article. She is a research associate in electrical and computer engineering.
She compares alternative sources of energy with new technologies. And their cost reductions for the companies implementing them.
I am a researcher studying clean energy technology. Particularly the transition towards zero-carbon energy systems.
New technologies are sometimes energy-intensive. They often become more efficient over time. And that is a natural improvement of any technology. Saving energy equals cost-saving.
We can label bitcoin mining as resource-consuming. And wasteful. But this will only encourage people to make it more energy-saving.
- Renewable energy sources will become the new normal for mining operations.
Mining activities that use renewable energy are bound to have a competitive edge. They invest upfront in some technology, but afterward, they enjoy free energy. The bitcoin mining business relies on harnessing every possible efficiency. So, beating an electric bill for it is pretty hard. That is why there is going to be a drive to create energy-saving blockchain technology. Eco-friendliness is a new productivity area for these businesses to explore.
Blockchain development is a good thing. And that because other technologies will emerge in the process. For example, the increased demand for green energy will lead people to develop a solution. NASA designed technology to help humans reach space. But in the process, they created a lot of new items to better human life on earth. An example of such was the LASIK surgery.
Mining operations have a strong financial incentive to cut their power costs. And economics dictates that operators will find ways to pay near to zero for energy. The blockchain space could be the breakthrough we need. One that will lead us to the next generation of green innovations.