Researchers from Harvard have found that the Bitcoin network only consumes about 0.55% of the energy produced worldwide. The mining activity allows electricity service providers to monetize their unused capacity, only releasing what is necessary to meet demand.
Economist Mickey Koss has discussed how Bitcoin (BTC) may help solve some issues concerning wind and solar power. He addresses the topic of its alleged waste of energy, the most frustrating criticism about the network.
Electricity Service Providers Should Use their Excess Energy
Prominent researchers from Harvard University have found that the Bitcoin network only consumes about 0.55% of global energy production. They have estimated the use of between 6% and 10% of electricity only in transmission and distribution.
It would not be a problem if Bitcoin used more energy, as it would become wasted anyway.
The government of California seeks to achieve carbon-neutral goals by using batteries on an industrial scale. That idea is against its objectives, as it requires extracting millions of tons of raw materials. In addition, it allows powering around one million homes for only four hours.
Therefore, they would need a battery exceeding five times the global capacity. There was no practical way to store the enormous amount of unused energy until Bitcoin mining emerged.
Bitcoin Mining Helps Convert Unused Energy into another Type of Battery
Producing electricity is expensive and complicated as it is necessary to maintain enough capacity to serve immediate daily needs. Since it also requires supporting the expected growth of the population, most companies are operating below their capacity.
Electricity service providers can monetize their unused capacity thanks to Bitcoin mining, which only uses enough energy to meet daily demand. That allows companies to stop the pace of rate increases, helping those who cannot afford a higher energy bill.
The Bitcoin mining market is liquid, allowing businesses to sell the extracted coins immediately. That way, they can achieve their income goals and help protect the network while helping those with lower incomes. It also contributes to a broader distribution of BTC as leading miners will no longer be single-purpose companies.
The additional cash the operators on the network obtain may help them spend more money on maintenance and development. That would make the blockchain more resilient and sustainable for future generations.
Therefore, those claiming that Bitcoin mining uses too much electricity daily should know that it consumes much less than they waste. They should also stop wasting energy, leaving idle capacity to convert it into another type of battery: money.
Those needing excess and unused capacity may use Bitcoin mining as a sponge. At the same time, they can help support a future with plenty of reliable electricity for citizens worldwide.
Meanwhile, Bitcoin is trading at around USD 19,216 and has accumulated a 0.1% loss over the last 24 hours. While its daily trading volume is above USD 21.81 billion, its market capitalization is about USD 368.28 billion, according to CoinGecko.
By Alexander Salazar
