The green revolution of crypto mining?Industry sounded the alarm

After being hailed as various champions by many in the global digital asset market, Tesla CEO Elon Musk Threw a bombshell In the crypto community in early May, I reviewed the company’s decision to start accepting Bitcoin (Bitcoin) As a means of payment for various car sales.The reason cited is the Bitcoin mining process Resources are too intensive and unsustainable In the long run.

As expected, Musk became a high-heeled shoe almost overnight, especially among the people who started calling him the Bitcoin supremacist Sell-offs and market manipulatorsNo matter what the name is, this episode seems to be Become the focus Regarding the energy consumption of the crypto mining industry. Recently, more and more crypto companies have publicly announced that they will switch to greener energy alternatives. This fact most prominently reflects this.

Earlier this month, Bitfarms, a publicly traded North American Bitcoin mining company, revealed that it has successful Efforts to use 99% of clean energy to power nearly 1.5% of the Bitcoin network. Not only that, even the concept of carbon-neutral exchange-traded funds (ETF) is quickly gaining attention worldwide, and many major investment management companies, including Toronto-based Ninepoint Partners LP, have taken steps to ensure this.

Finally, the crypto derivatives trading platform BitMEX recently announced its The decision to achieve carbon neutrality, While Marathon Digital Holdings, a US-based Bitcoin mining company, hopes Achieve the 70% carbon neutral goal in the near future.

Is green the only way out?

In order to better understand whether the mining industry is really moving in a greener direction, Cointelegraph contacted Sam V, the chief strategy officer of Bit Digital, a NASDAQ-listed bitcoin miner, and the former head of capital strategy at Bank of America Merrill Lynch. . In his view, the “turn to green” has already occurred rapidly in the global mining sector, adding:

“Many miners have been actively striving for sustainable energy practices, especially listed miners who want to maximize returns for shareholders and stakeholders. We believe this is indispensable for improving our sustainable practices and mitigating our environmental impact. Methods.”

When asked about his own company’s sustainable development efforts, Tabar emphasized that although it powers nearly 2% of the global Bitcoin network, the vast majority of Bit Digital’s energy comes from carbon neutral energy sources such as hydropower, solar and Other wind energy technologies.

In addition, he further emphasized that as the industry moves towards an increasingly digital future, more and more companies will seek the services of well-known independent environmental, social and governance (ESG) consultants for self-monitoring, goal setting, transparency and transparency. Help improve their percentage of green power and other sustainability initiatives.

He added: “We are currently working with APEX, an independent ESG consultant. By measuring our sustainability and mining footprint, as we continue to move to 100% clean energy, we are able to set goals for continuous improvement.”

Will renewable energy really be cheaper?

Matt Hawkins, CEO of the multi-algorithm CPU and GPU miner Cudo, told Cointelegraph when talking about the renewable energy and fossil fuel debate that behind the scenes, several major players operating in this field have already begun to transition to renewable energy. Energy, he believes this is a positive step forward for the entire crypto industry. He further added:

“The reality is that in many cases, renewable energy sources are cheaper and therefore more attractive to mines, provided that this power source is stable and not affected by seasonal fluctuations, such as the dry season in China, and mines previously Shift operations to fossil fuel-powered facilities during the dry season.”

Continuing to talk about China, Hawkins believes that the continued migration of hashing power should be seen as a huge positive factor, especially in terms of the decentralization of the Bitcoin network. Tabar further believes that the ban on cryptocurrency-related activities has A blessing in disguise For American miners who have been looking for innovative ways to find clean energy in the United States.

Is nuclear energy an option worth considering?

Although much of the discussion around renewable energy mainly revolves around solar and wind energy, North American mining and hosting company Compass Mining announced that it has started and Signed a 20-year contract Working with Oklo, a nuclear fission startup, once its micro-reactor is deployed in the next two to three years, it will provide 150 megawatts of energy for the mine.

In addition, according to data released by the US Energy Information Administration, nuclear reactors will not cause any type of air pollution during operation. In this regard, Compass CEO Whit Gibbs believes that once his company switches to nuclear power, his company’s mining costs will “substantially drop.”Not only that, Compass is also discuss versus Crypto-friendly city Miami Regarding obtaining electricity from the Turkey Point Nuclear Power Plant in Florida.

Regarding the question of more mining farms exploring nuclear energy in the future, Hawkins reiterated his belief that “everything comes down to cost efficiency” and added that when the market is active and bullish, Bitcoin mining in most regions is The cost of electricity generated profitably. He added:

“Mining is a very intensive process and consumes a lot of energy. Therefore, the more clean and green energy a mine can consume, the better for the industry and our planet. The warning here is to make sure you don’t simply get from towns and cities Renewable energy is extracted from it to power Bitcoin operations.”

Miners of the future

Earlier this month, after China decided to completely ban its mining industry, Bitcoin experienced its biggest difficulty decline in a decade.After making this decision, the difficulty ratio of BTC rose sharply Fall down To 45%, many mines can produce more BTC at a lower unit cost.

Since the promulgation of the ban, the pace of achieving long-term sustainable development has been very rapid. Musk recently hinted that although Tesla did not cancel Tesla’s decision to start accepting Bitcoin payments, the crypto industry may be moving towards a greener future.Not only that, even recent data from the Cambridge Centre for Alternative Finance shows Energy reduction Used to mine BTC.

Therefore, time will tell us how the future of the Bitcoin mining industry will develop, especially as more and more miners begin to migrate to various cryptocurrency-friendly countries-such as those located in the Nordic countries or Central Asia- There is relatively abundant renewable energy.