Bitcoin (BTC) mining can transform the energy industry, contributing to a more efficient and environmentally friendly economy.
Although Bitcoin (BTC) is known for its high energy consumption, it could well become a key player in the evolution of the energy industry. Its ability to monetize excess energy generated by power plants could well be the catalyst needed to drive this industry towards a more sustainable future.
One of Bitcoin detractors’ main arguments is its energy consumption and, in particular, the pollution it would generate. The Bitcoin network is said to consume more than some countries and it could even destroy our planet. However, these accusations are based on poor analysis of what Bitcoin is, how it works, and what energy it uses.
According to calculations by the University of Cambridge, Bitcoin mining consumes approximately 116.61 TWh per year, or 0.07% of global energy consumption and almost as much as Argentina’s energy consumption. But is it even comparable?
Bitcoin is not a country, but a monetary exchange network. It would be more accurate to compare it with the global banking system. which consumes around 5,000 TWh, or 42 times more than the Bitcoin network.
Bitcoin miners’ main goal is to find a cheap and abundant source of energy. It turns out that this source of energy comes mainly from renewable resources, emitting no greenhouse gases. Currently, approximately 50% of the energy consumed by the Bitcoin network would come from renewable energy sources.
Bitcoin’s Unique Ability to Extract Surpluses
Bitcoin mining makes the electrical grid more efficient. Installing a Bitcoin mining farm at the foot of a power plant allows exploiting this excess energy to generate income from losses, as well as turning off mining computers when energy demand increases.
Much of the energy produced around the world is wasted each year. Texas is the state in the United States with the greatest potential for green energy production. Located at the crossroads between the Sun’s route and the wind’s route, it not only has vast reserves of fossil fuels, but also privileged access to solar and wind resources. In this context, Bitcoin mining emerges as the optimal solution to exploit the energy surpluses generated by existing power plants.
Renewable energies are not always in line with society’s electricity demand. For example, solar energy reaches its peak production during midday, when demand for electricity is typically lowest. This often results in excess energy that cannot be consumed immediately. Storing these production surpluses in batteries would be too expensive and, above all, too polluting.
However, Bitcoin mining can play an important role in regulating these surpluses. In this way, Bitcoin miners can absorb this excess energy during production peaks, helping to balance electricity supply and demand throughout the day. This efficient use of surplus energy could represent a crucial step towards a more sustainable and energy-efficient future.
Bitcoin Could Become the Battery Needed by the Energy Industry
Bitcoin mining could play a very important role in the energy industry. Bitcoin miners take advantage of renewable energy and can help regulate energy surpluses, which can greatly help in the fight against global warming.
In short, Bitcoin has the potential to become much more than just a digital currency. It could evolve into the battery that allows storing and recovering energy wasted without it. After revolutionizing the way value is exchanged, Bitcoin could well revolutionize the way energy is consumed.
By Leonardo Pérez