When one looks at the developments around the deployment of cryptocurrencies, for the most part the likes of bitcoin are still traded as somewhat of a speculative commodity. Sure, even if the online casino you frequent is flirting with the idea of accepting cryptocurrency as a deposit and withdrawal option, for many people the likes of bitcoin will only truly be legitimised once their deployment goes mainstream and we see more of these cryptocurrencies in commercial deployments.
Bitcoin mining breathes new life into the American fossil fuel age, creating a demand that environmentalists say discourages investment in renewable energy at a time when a shift away from carbon is essential. Renewables alone will not solve the problem of bitcoin electronic scrap, which is a problem of the mining process.
Although Bitcoin does not exist as a physical object, new coins are mined and circulated through a process involving the use of powerful computers to solve complex mathematical problems. The process requires so much energy that the Bitcoin network is estimated to consume more energy than several countries, including Kazakhstan and the Netherlands.
Puzzle mining requires many energy-intensive calculations. Fossil-fuel power plants make up a large part of the global energy mix, and bitcoin mining is said to be responsible for producing greenhouse gases that cause climate change and are less polluting than heavyweights such as agriculture, construction, energy and transportation. Cryptocurrencies run on fossil fuels, and in just one year bitcoin mining has consumed more energy than the Philippines.
In its first report, the foundation published the results of its survey of 32 of the current global Bitcoin networks and found that participants consume 67% of a sustainable electricity mix. Based on these results, the total “sustainable energy mix” could be as high as 56%, making the bitcoin mining one of the most sustainable industries.
DMG Blockchain Solutions and Argo Blockchain announce Terrapool, calling it the world’s first clean energy bitcoin mining pool. Power Transition estimates that scalable digital energy platforms are 250,000 times more energy efficient than Bitcoin and consume only 0.001 kWh per hour of transactions compared to 250 kWh for Bitcoin (Digiconomist places it at 950 kWh) and 55 kWh for Ethereum (0.003 VISA).
Other power plants across the country are also using cryptocurrency mining under different conditions. In Montana, a coal-fired power plant, Marathon Digital Holdings, is 100% consuming the energy for bitcoin mining under a power purchase agreement. In Venango County, Pennsylvania, a power plant converts coal waste into electricity that can mine bitcoin and feed electricity into the grid if needed.
There are numerous commercial services that provide clean renewable energy to crypto-mining server farms. Genesis Mining, for example, makes it possible to extract bitcoin and ethereum in the cloud.
With more and more mining companies relocating to countries with favourable policies, bitcoin mining will be a sustainable source of energy, much like wind, water, and solar. We’re edging closer to having the biggest online casino NZ has on offer not only accepting cryptocurrencies, but perhaps powered by the same solar panels which go into the mining of cryptocurrencies on site.