Bitcoin Mining Operations Need Renewable Energy
The growth of Bitcoin mining space has been exponential over the past years. When Bitcoin first emerged, mining depended on personal computers and GPUs. Currently, mining involves exceedingly well-organized mining pools that depend on cutting-edge ASIC miners.
Due to the growth in scale of operations, people have been questioning the environmental cost involved in Bitcoin mining.
Marco Streng of Genesis Mining talked about large-scale mining operations in the recent episode of the Untold Stories podcast. He discussed the environmental effects and the challenges related to energy consumption.
Huge amounts of electricity are involved due to the proof of work consensus algorithm powering Bitcoin. Hence, numerous mining pools have been compelled to establish operations where there is cheap electricity and somewhat less rigid energy regulations and caps.
According to Streng, it is not completely true that Bitcoin mining poses the biggest environmental disaster. He thinks people are only considering the demerits and neglecting the merits.
Streng noted that mining operations are critical in driving economic growth in such areas. He continued that cheap electricity is a basic criterion for mining operations and it is the reason why mining operations are established in inaccessible areas of the world.
Miner revenue has been declining steadily since the beginning of this year. The upcoming halving event may eventually worsen the situation. The health and security of Bitcoin network could be jeopardized by the unforeseen declines in hash rate and mining rigs shutting down.
Streng noted that adequate resources are available for the generation of the amounts of electricity needed if innovative efforts are in place and if there is focus on renewable energy.
Energy cost and Bitcoin network are two critical factors that Bitcoin miners need to deal with together soon. Miners may be pushed to the edge regarding profitability by the time the upcoming block reward halving happen.
Recently, LongHash analysis maintained that miners can negotiate with electricity providers to decrease electricity bills or utilize new mining equipment requiring less energy for operation.