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Renewable Energy and Prioritisation of Industries
Industries worldwide are facing the challenge to convert their energy consumption into renewable sources of energy. Environmental advocates are very vocal in criticising carbon emissions and using non-renewable energies by industries to maintain their operational flow. The never-ending debates between industries and regulatory bodies boil down to: should allowable energy consumption be categorised per industry? Are there priority and frontline sectors that need exemptions when it comes to carbon emission?
However, experts and advocates stand the ground that this is a complex concern. Figuring out how much energy consumption is too much, tethered with industry prioritisation, is hard to gauge. Evaluating which businesses, sectors and industries are worth spending environmental resources is a tricky question of prioritisation. As crypto assets, including cryptocurrency and blockchains, rose into popularity, the question of these industries’ contribution to carbon emission and climate change is a significant concern.
Bitcoin was first introduced in the year 2009 by an anonymous individual or group known as “Satoshi Nakamoto”. Bitcoin pioneered the fame of cryptocurrency and other crypto assets. Its decentralised nature and the idea that acquisition of Bitcoin can be done through mining and not just by buying the coins hyped consumers into going into the cryptocurrency. Nakamoto’s whitepaper included Bitcoin mining protocol, wherein miners will have to crack complex mathematical problems and, in turn, be rewarded with newly-minted Bitcoins. Cryptocurrency trading platforms and exchanges also rose to popularity in the realm of digital assets. Financial experts considered cryptocurrency as a high-risk venture. However, like any similar investment, careful data analysis and rigorous trading methods can be used to one’s advantage, resulting in substantial revenues.
Bitcoin mining requires numerous servers equipped with sophisticated hardware. Some Bitcoin mining facilities host 50,000 rigs that run 24/7, 365 days a year. Maintaining the Bitcoin blockchain also requires a massive amount of energy consumption. Blockchains are the public ledger used by Bitcoin to track and verify all cryptocurrency transactions. As reported by Cambridge Center for Alternative Finance, Bitcoin’s energy consumption is equivalent to the annual energy usage of small countries like Sweden and Malaysia. Bitcoin mining and blockchain operations consume approximately 110 Terawatt Hours per year or 0.43% of global energy consumption.
Cryptocurrency’s contribution to the problem of climate change is the recent crypto news sensation. Elon Musk’s reversed plans toward Tesla’s acceptance of Bitcoin as a payment system revolves around this concern. Musk’s concern about non-renewable energy consumption and carbon emission became the main reason for his withdrawal from cryptocurrency support. European Central Bank also pointed out the massive carbon footprint that cryptocurrency operations contribute. In their statement, they described this issue as grounds for concern and discussion.
Can Bitcoin Go Green?
Cryptocurrency mining companies, investment firms and power providers are starting the quest towards green cryptocurrency. Since numerous sectors and businesses are beginning to adopt cryptocurrency and blockchain technology, the demand for renewable energy to fuel this technology is growing.
A New York-based energy provider teamed up with a Toronto based investment firm in using carbon offsets to compensate for carbon emission of Cryptocurrency operations. The company will implement tree planting projects in the Amazon. This project will help to capture carbon dioxide through an increased amount of trees.
The energy trader and Geneva-based company is campaigning the emergence of greener cryptocurrencies. During the S&P Global Platts Conference, they announced their desire to reduce carbon emissions by mining and maintaining cryptocurrencies. Mercuria CEO Marco Dunand specifically pointed out the vast potential that Mercuria may streamline the cryptocurrency operations, making it efficient and energy saving. Dunand also reiterated the urgency of converting cryptocurrency to a greener industry.
Pure Digital Power Corp
A power and bitcoin mining company situated in Alberta, Canada, will emphasise green renewable energy. The company plans to establish a 5 megawatts sustainable energy dominated Bitcoin mining facility. Solar, wind and minimal natural gas will power the site.
Crypto Climate Accord
Pioneered by Rocky Mountain Institute and the Alliance for Innovative Regulation and inspired by the Paris Agreement, the Crypto climate accord aims to eliminate carbon emissions from the fast-growing crypto industry. Their goal is to convert the cryptocurrency industry to 100% renewable energy users by 2030. The company will implement the big “tent” strategy and act as the coordinating body to decarbonise all aspects of the cryptocurrency industry.
Bitcoin’s Higher Potential to be Renewable Compared to Other Industry
Cryptocurrency mining can be set up anywhere globally, which is advantageous to energy sources choice and consumption. Unlike any other industry which requires energy production close to its end-user, bitcoin miners can utilise even inaccessible power sources.
Bitcoin mining facilities can make use of hydro energy from places where these types of energy are wasted. For instance, Sichuan and Yunnan in China have massive production of hydro energy that outweighs its demands. Because crypto mining facilities can be built anywhere, this can be an advantage for the industry.
Crypto miners are already exploring alternative sources like Flared natural gas from North Dakota to Siberia. Flared natural gas is the by-product of oil extraction because oil extraction is usually situated in remote oil mines. The full potential of flared natural gas as a source of energy is not being utilised. Even though crypto-mining enthusiasts are studying this concept, experts say that there is enough flared natural gas in the US and Canada to sustain the entire Bitcoin Network.
Cryptocurrency adds to the energy consumption and carbon emission of the world. Its growing popularity means an upward industry of crypto companies, miners and users. Consequently, this will increase the energy needed to sustain cryptocurrency operations. Like any other sector, the responsibility to act on environmental concerns and climate change is an urgent matter that cryptocurrency companies must deal with. The strategy to reduce carbon footprint and show that the societal impact of Bitcoin and other cryptocurrencies outweighs the number of resources required to sustain it.
Cryptocurrency mining is just one of the many ways to acquire these digital assets. Financial experts acknowledge the risks that this industry may present. However, just like any business and investment, substantial revenue may be possible through careful data analysis and robust training methods. Visit the Yuan Pay App website to learn more about cryptocurrency.