Most environmentalists take a dim view of cryptocurrency. They particularly focus on Bitcoin, which causes significant energy expenditure by mining it as well as the security of its transactions.
Good news! We can look at this problem from another angle. Bitcoin can indeed be perceived as a lever to accelerate the transition to renewable energy. Excess energy consumption linked to cryptocurrencies (such as Bitcoin) can promote innovations in the field of renewable energy. This is also the opinion of the CEO of ERCOT when he declares that “Bitcoin is a great opportunity for renewable energy production”.
The words of the CEO of the Texas energy network.
The problem: BTC is very energy intensive
Like other major countries around the world, America is stepping up its efforts to transition to renewable energy. Their strategy: reduce carbon emissions as much as possible and eliminate fossil fuels. Such a project is often accompanied by various measures aimed at reducing energy expenditure at both household and business level.
The reality is very different. America must indeed deal with the excessive energy demands of cryptocurrencies, including Bitcoin. Due to its mining and to ensure network security, Bitcoin is very energy intensive.
And due to the increase in the number of Bitcoin users, this demand will only increase. As we can read on this article, this demand could reach 6 GW in June 2023 if we take the State of Texas apart. A demand that only a new electricity network can meet.
The solution: collaboration between Bitcoin and Ercot miners
According to Bloomberg, Ercot interim CEO Brad John revealed in April that the state of Texas is working with miners to prepare the grid to handle 25 gigawatts of cryptocurrency power demand.
For their part, cryptocurrency miners say they are ready to participate in the stabilization of the Texas energy grid. To do this, they plan to absorb the excess energy produced by wind and solar farms during the day. When the demand reaches a peak and there is no more energy, they will turn off the system.
It’s a completely possible collaboration if we refer to what happened during the heatwave this summer. When the demand for electricity reached its peak, most miners stopped their activities to face the heat wave.
Based on the growing demand for energy needed by cryptocurrency miners like Bitcoin, the Ercot network should come up with a solution. Technically, it is almost impossible to meet this demand except by creating a new energy network. But it is possible to work with miners on a lasting solution.
Get a summary of the news in the world of cryptocurrencies by subscribing to our new servicedaily and weekly so you don’t miss any of the essential Cointribune!
My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe I’m very interested in. And the topics covered in the platform give me the opportunity to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!