Electrek Green Energy Brief Thinks Bitcoin Can’t Survive on Renewable Energy
If you were to ask the average Bitcoin miner about the challenges they face, certain topics would be consistent: the high cost of equipments, reduced mining rewards and, of course, the cost of electricity.
Bitcoin is gotten through mining and the process of mining is very energy-intensive and miners have always looked for ways to get around this. Many have resorted to stealing energy from schools and other places, with many people being arrested for this. There has also been a rise in cryptojacking, in which victims’ computers are used to mine Cryptocurrency without their consent.
Many mining companies moved to places with low energy costs but even that has seen pushback. Some small towns have banned crypto mining firms from moving in and Norway has removed the subsidy it once had in place for crypto mining and the cost of mining coins rose overnight.
One suggested solution to these problems has been renewable energy. The world on its own is looking into more sustainable and environmentally conscious ways to generate energy and it has been suggested that the crypto community do the same.
However, Alex de Vries has come out to oppose this idea in an article for the Joule. In his opinion, the solution to the crypto communities problems aren’t as simply as switching to renewable energy and on the long run, this could even harm the efforts that have been made to promote sustainable energy.
One factor that must be looked at is the fact that most sustainable energy is generated seasonally. In the case of wind turbines, only certain times of the year produce strong enough winds and in the case of solar power, the sun is only out for a limited amount of time.
The problem with crypto mining is that it has a fairly consistent demand rate that holds throughout the year.
While this might not be a problem for the times of the year when renewable energy is being produced at an efficient rate, when the energy isn’t being produced, there is still the demand for energy to mine ceypot.
Also, when most renewable energy plants were being designed, crypto was not as common and so, there was no anticipation for the amount of energy it would demand. To give some perspective, the Bitcoin Mining Network used as much energy as some countries in the last year.
“They effectively increase the baseload demand on a grid throughout the year. This demand has to be met with energy from alternative sources, when seasonality causes production of this renewable energy to fall. In the worst-case scenario, it presents an incentive for the construction of new coal-fired power stations to fulfill this purpose,” he said.
Vries has suggested that an alternative means if energy be sought out by the crypto community.