This analyst believes that Bitcoin is driving the demand for renewable energy; Why?


Bitcoin has been able to measure the interest of a large group of people who want to know about the volatility of its price or the mining impact caused by the digital asset. While volatility is a part of any market, environmental factors may not be. Some think that the shift in focus to crypto mining was just due to hype and regulations. Tech entrepreneur and quasi-environmentalist Daniel Batten recently argued that the bitcoin mining encourages the construction of renewable energy plants and helps decarbonize electricity networks.

Batten appeared in the last podcast from Brave New Coin, where he reinforced his point that BTC mining leads to 70% of energy consumption based on renewables by 2030.

With fossil fuels still the main focus of consumer attention, even growing renewable energy sources will not contribute to this condition. According to the IPCC (Intergovernmental Panel on Climate Change), if we do not massively switch to the use of renewable energy, there would be runaway climate change. What should be the topic of conversation.

According to Battens, Bitcoin mining drives higher demand for electricity and, as a result, investments in renewable energy plants. Since mining does not require a continuous source of power, it can be directed to locations to harness excess renewable electricity generation. However, Batten noted that a point of concern was the small size of the industry which would make it difficult to incentivize all the renewable energy required.

He stated,

“My only real concern is ‘Does Bitcoin mining require enough electricity to help us build that network to the extent that we need it?”.

Bitcoin miners in Norway were already a great example of the use of clean energy for mining. Given the country’s access to hydropower and other renewable energy, 100% of the electricity generated in Norway came from renewable energy. According to data collected by CoinShares, miners use this renewable energy to produce around 1% of the total hash rate of BRC. So if this were implemented in countries like the US and Kazakhstan where Bitcoin mining is high, it could reduce reliance on fossil fuels.

In fact, Texas is already exploring the use of flexible data centers that can switch from the public grid to temporarily generate its clean energy from dedicated power generators. This will reduce stress on the network during periods of high retail demand. Meanwhile, many others were focusing on hydropower, such as Miami-based XBTO Group Bitcoin mining operation CEO Mas Nakachi.

Source: Twitter

According to reports, Nakachi stated that “hydropower is one of the most reliable renewable energy sources available to us.” While wind and solar power are variable, electricity can be generated through flowing rivers and used everywhere, according to the MD. he added,

“The use of hydroelectric energy has remained an effective mechanism to keep mining as efficient as possible.”

An Bitcoin Mining Council January Report already reflected the shift to renewable energy, as it noted that by Q4 2021, the global Bitcoin mining industry was running on an estimated 58.5% renewable energy. It is clear that Bitcoin and other crypto miners will have to prioritize using clean energy before a regulation threatens to ban such activities or replace them with proof of stake (PoS).

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