Bitcoin Miners Likely to Use More Sustainable Mining Approach Ahead
Many people have been criticizing even as its financial aspect is contentious. Aside from its financial aspect, the way it is produced is another point of concern. This is because its mining requires intensive energy.
Many people decided to be financially free at the expense of environmental depletion. The claim of possessing a decentralized currency at the expense of the environment is unbalanced, as gold, which is the major store-of-value rival of Bitcoin, is also energy-intensive.
It is difficult and harmful to mine Bitcoin and gold. Chris Burniske, partner at Placeholder Venture Capital, commented on the issue as follows:
"But that means it's worse for the environment!" some will say. It's not so much about the absolute dollars that go into production, but instead how those dollars translate into *consumed resources* to mine and secure the asset.
— Chris Burniske (@cburniske) January 9, 2020
Burniske cited a report stating there is more sustainability in the production of Bitcoin in comparison with gold. According to a report in 2017, the major money spent by Barrick Gold Corp. to mine 5.3 million pounds of gold was on diesel fuel. When it comes to crude oil usage accounts, the cost of gold is 0.27% global oil consumption.
More than 75% of the energy used in producing Bitcoin is from renewable resources, in comparison with diesel fuel used in producing gold. According to Burniske’s prediction, the energy source of Bitcoin production has higher odds of becoming entirely renewable.
As Bitcoin miners and the cryptocurrency industry become more conscious of the environment, the tendency to use a more renewable approach to production will increase. Burniske mentioned environmental degradation in this generation as a motivation towards a more sustainable approach to mining.
He further mentioned gold becoming more energy-intensive, and it being a reminder of “centuries past.”
In conclusion, Burniske said:
“If rising generations realize #bitcoin and #goldprovide equivalent services but $BTC is much more sustainably produced, that alone could cause them to migrate.”
Featured image courtesy of GettyImages. Source: Cryptopress.