How Off-Grid Bitcoin Mining Makes Society Extremely Energy Efficient
August 12, 2021 - Expert Commentary
Bitcoin might just be what saves us from ourselves.
That may sound like a wild statement to environmental groups that have their crosshairs firmly aimed at Bitcoin. Their outrage over Bitcoin’s perceived carbon footprint has begun to seep into public discourse.
It is no secret that Bitcoin requires high amounts of electricity. However, when you hear some of the outrage, it sounds like Bitcoin produces a carbon footprint comparable to the global automobile industry. That is far from the truth.
Bitcoin mining can be a problem if it relies on dirty energy sources like coal to give some credence to the concerns. However, the notion that Bitcoin somehow takes away the power that should be going into people’s homes is far-fetched. Bitcoin miners are investing in off-grid sources, including new plants to achieve their electricity needs.
Most Bitcoin mining is highly specialized and localized. Miners specifically target underutilized locations to organize for cheaper power supply locations and establish operations with relative ease.
Off-grid mining is a way to address concerns about Bitcoin mining’s carbon footprint. There is the regular grid that relies on significant power generating plants like the Hoover Dam. These plants supply the primary grid across all American states.
Bitcoin mining is creating investment in off-grid sources. This opening allows the use of non-rival energy to mine cheaply. Marty Ƀent, an editor of a daily newsletter about Bitcoin, believes that off-grid mining the capability of this form of mining to make society extremely energy efficient is the most under-appreciated trend across all markets right now.
Bitcoin miners have seen the writing on the wall. The key to long-term mining without attracting regulatory crackdown is the implementation of sustainable mining practices. China used the Bitcoin mining carbon consumption of electricity from the main grid as the pretext for shutting mining nationally. The U.S. and Europe are unlikely to follow suit, but it is best to get strapped for whatever eventuality.
The State of New York had considered a ban on Bitcoin mining in its legislative Assembly. Luckily, the bill died in the Assembly, meaning that, at least for now, there is little risk that mining could be shut down.
Regardless, Bitcoin miners are going the extra mile. Investments in renewable energy and off-grid mining are at an all-time high.
Investments in Renewable Electricity Serve a Societal Good
Setting up renewable energy plants can be expensive. New administrations come and go, changing policies, and this industry has yet to realize its full potential. Therefore, Bitcoin mining proposes an efficient channel to invest in this sector and get renewable sources to realize their full potential.
There are lots of potential such sources in North America. Harnessing power from solar or wind provides endless opportunities.
For instance, Square Inc., the financial services company of Twitter CEO Jack Dorsey, intends to partner with Blockstream mining to build an open-source, solar-powered Bitcoin mining facility. Square will invest $5 million in the project that will be a “proof-of-concept for a 100 percent renewable energy Bitcoin mine at scale” and will be built at one of Blockstream’s sites in the US.
Dorsey is keen on cryptocurrency. His pivot to renewable energy is a direct response to the criticism that has come at Bitcoin.
Converting Industrial Waste into Electricity
Forbes Magazine did an insightful piece on the growth of green Bitcoin mining for their August/September issue. The story focused on Bill Spence and Greg Beard from Pennsylvania. They both grew up in a state that was one of the hubs of America’s Coal mining heydays.
Now, Spence focuses on converting the detritus of 20th-century heavy industry into 21st-century digital gold. He acquired the Scrubgrass Generating power plant in Venango County, north of Pittsburgh, specializing in combusting gob and generating an 85,000-kilowatt output.
Spence is an emerging class of Bitcoin miners who turn its most significant liability into an asset. The energy thirst of Bitcoin can become a cause for investing in alternative sources of energy.
Whether by repurposing waste fuels like gob or tapping into flares at gas fields, energy entrepreneurs are profiting by converting digital lemons into green lemonade. The United States could experience an energy revolution fuelled by an unlikely source.
Think of the vast amounts of potential wind farms, solar farms, and other forms of renewable electricity that Bitcoin miners can invest in or rejuvenate. This energy revolution will be a win-win for all stakeholders. Yes, some will still not be content, claiming that this energy could be appropriated elsewhere. Think of it this way; those plants were lying idle, in some cases non-existent.
Therefore, society as a whole becomes more energy efficient. Not all of the electricity that such plants generate will go into mining. A world with more renewable energy investment is one we should all welcome.
Off-Grid Mining Is an Underappreciated Trend
The rise of off-grid mining merits more mention. It can have a broader impact than just the Bitcoin sector. If mining can prove that this investment model is viable, there is no reason for other multinational corporations to get involved. Using non-rival energy ensures that miners can still mine at a manageable cost while maintaining the sustainable mining goal.
Securing the best monetary network around using renewable energy is a welcome proposition. Bitcoin is the first channel that turns electricity directly into money. This asset’s rapid curve offers the best way to achieve a standard solution for all stakeholders.
Hopefully, this mode can help others understand that the addition of Bitcoin mining as an option to renewable energy developers could allow more reliable power generation from such plants. Bitcoin offers ready and consistent demand, and mining companies and entrepreneurs often have the liquidity to start.
Therefore, it is time to end the bickering and appreciate where this industry is going. China could have seized the moment to incentivize crypto miners to go green but instead went for the jugular. The possibility of the U.S. becoming the world’s dominant mining region is now within sight. Should miners and authorities take up their roles; this collective effort can work to significant effect.
There is definite proof of concept for sustainable Bitcoin mining. Society rarely has such a silver bullet to prevailing issues. Accordingly, Bitcoin can both fix the financial system and create a unique energy revolution.
VBit Mining Has Always Been a Champion of Renewable Energy
The quest for more efficient mining did not start yesterday. We recognized the potential in off-grid mining from the onset. Our data centers in North America are proximate to renewable electricity sources to achieve this utility.
Accordingly, we have dedicated our efforts to optimizing Bitcoin mining operations for the public. We offer hosted mining facilities that provide conditions necessary to make mining tenable. These are primarily cheap electricity and cooling.
The use of hydroelectric energy from surrounding locations makes our operation cost-effective. Finding such cheap energy in relatively rural areas improves the viability of a Bitcoin mining operation.
Accordingly, we wish to educate our visitors both on the potential of Bitcoin mining and the need for renewable electricity. This duality of purpose fits like a glove in the future of the cryptocurrency industry.
Visit VBit Mining Shop to learn more about Bitcoin mining!