Recently, the energy consumed by crypto mining has become an increasingly popular topic of discussion. The only significant disadvantage of Bitcoin mining is that it requires a really large amount of electricity. Mining at home is practically non-existent today, with the exception of a few highly developed countries. And cheap electricity is needed by everyone, not just those who are engaged in mining. And if, in the process of producing such inexpensive energy, the generated heat could be given to society as an additional source of renewable energy, the result could be a phenomenon that is quite interesting in many aspects.
The high cost of electricity, combined with the plummeting Bitcoin rate over the past few years, has put the mining industry in a rather difficult position. The general consensus is that even those with the ability to keep mining costs low are in need of alternative solution. And it is likely that renewables will play a big role in the near future.
It will probably not be a secret to anyone that the production of electricity is beginning to gradually deplete the resources of our planet. In this regard, renewable energy sources are becoming more and more popular, although their installation is also quite expensive.
75% of crypto mining comes from renewable energy sources
On Friday, CNBC published an interview with SUKU CEO Yonathan Lapchik. During which he spoke about the renewable energy sector for mining Bitcoin.
The CEO of SUKU, one of the crypto projects, is confident that the majority of digital asset miners use renewable energy sources. And they really interested in finding free and excess capacity.
Research firm CoinShares estimates that 75% of BTC mining comes from renewable energy sources.
Also, the guest of the program indirectly pointed out that this figure was almost always known. And although BTC does consume a lot of electricity, it is most often about free, redundant and renewable sources. This is due to the very nature of crypto mining, which aims to maximize profits while minimizing losses.
Tesla stops accepting Bitcoin payments due to its power intensity
Commenting on Tesla’s CEO Elon Musk, who recently announced that he would no longer accept Bitcoin to pay for electric vehicles, Lapchik noted: It’s surprising that Elon didn’t think about it before stepping into space and starting accepting Bitcoin as a payment option for Tesla.
In fact, these data are not new, added Lapchik. For this reason, we prove over and over again that this is a reality for miners on the Bitcoin network.
After Tesla released its announcement, several projects have found clever ways to capitalize on the chaos. By tweeting about the green nature of their networks. Which require only a tiny fraction of the energy needed to keep the Bitcoin network going. They each experienced double-digit gains on May 13, while most of the crypto market is in red.