In the previous article on bitcoin mining, we already discussed many aspects of energy consumption by the industry. We also compared the usage with other sectors and energy consumers from around the globe based on the most recent data.
This article will focus on the future of energy usage in crypto mining and how it can contribute to the global transition toward sustainable energy usage.
What Are Green Energy And Renewable Energy?
The terms Green energy and Renewable energy are often used interchangeably despite having some technical differences.
Green energy is a part of renewable energy originating from sources that have the highest environment-friendly potentials.
The following illustration by the U.S. Environmental Protection Agency shows green energy as a subset of renewable energy sources.
Advantages Of Green Or Renewable Energy From Bitcoin Miners’ Perspective
- The most significant advantage of green energy is its practically unlimited availability.
- The global supply of fossil fuels is likely to end by 2060, according to Octopus Energy estimations. However, green sources such as wind, solar, geothermal, or hydropower will continue to be there for as long as the earth sustains.
- As bitcoin mining is expected to continue until 2140, miners must rely on energy sources that are sustainable for such a long time according to its protocol.
- Green energy’s other huge benefit is that it saves the environment.
- The most significant criticism regarding bitcoin mining is the environmental concerns.
- It stirred around the world when Elon Musk declared to stop accepting bitcoin payments for Tesla cars citing the harmful effects of the environmental degradation caused by the mining operations.
- CO2e or carbon dioxide equivalent, which is carbon dioxide emission for generating per kWh of electricity, is an excellent indicator to compare the environmental impact of different energy sources.
- The following illustration shows that natural gas emits 250 to 1000 grams of CO2 for producing 1 kWh of electricity. In contrast, the CO2e for wind energy is only around 9-18 grams through its lifecycle.
- Source: Union of Concerned Scientists
So the bitcoin mining industry may quickly capitalize on this factor as it will propel a significant positive vibe.
Tesla CEO Elon Musk mentioned that Tesla might accept bitcoin payments again if the industry demonstrates more than 50% energy usage from environment-friendly sources.
Stability of price is another positive thing about green energy consumption that favors mining sustainability in financial terms.
As renewable energy resources are not limited in supply, it is not susceptible to sudden price swings.
More interestingly, with a continuously increasing global production output and more adoption across industries, the price of natural energy sources has been declining steadily over time.
- As a result, the entire renewable energy industry has achieved more efficiency, higher production capacity, and economies of scale over time.
- The following graph demonstrates how the production costs for energy sources such as solar …