Opinion: Bitcoin Mining is Becoming a Superpower

• The Bitcoin mining revolution is in development through renewable resources.
• Energy consumption is decreasing drastically due to Bitcoin miners’ proficiency.

Since the initial days of cryptocurrencies, mainly bitcoin, a widespread debate has been at the forefront regarding its mining. It is said to exert huge environmental damage due to the heaps of energy it requires for its operations. Thus, for a long-time, It has received heavy criticism from all sectors of the economy due to its exhaustive utilization of resources. Even the cost of setting up its pools is much higher than other crypto-related activities. However, there are plenty of upsides to Bitcoin mining also, as it promotes the use of renewable energy and creates plenty of job opportunities. The Bitcoin miners don’t have to settle in one place to extract Bitcoin, giving them the freedom to travel. 

How is Bitcoin Mining Changing the Perception of People?

For a long time, It has created an energy crisis in several places due to its massive requirement. But with time, the energy demand has declined due to rapid advancement in this sector. When it comes to mining, one of its biggest advantages is its potential for the evolution of electrical grids. A demand response mechanism is a breakthrough in its operations as the energy consumption can be toned down. This means energy can be tweaked adequately depending on the energy requirement during a particular stage of Bitcoin mining. 

In December 2022, the Electric Reliability Council of Texas (ERCOT) released a report about it. That report found that a 96% drop has been seen in energy consumption by Bitcoin miners. During a winter weather event, this data was collected as the demand for electricity was quite high. Almost 2,000 megawatts of mining were shut down because of huge demand. 

Importance of Bitcoin Mining in the Rise of Renewable Resource Utilisation

One of the biggest changes Bitcoin miners can bring into the mining process is using renewable energy. Depending upon the demand, bitcoin miners can change the usage of wind, solar, and natural gas plants. Therefore, the impact of renewable resources increases around the Bitcoin mining industry. In a recent Texas Blockchain Summit, Brad Jones, the former Interim CEO of ERCOT, streamlined the importance of Bitcoin miners. Whenever energy prices rise, bitcoin miners tone down their energy consumption, allowing consumers to utilize that energy. 

In most cases, the Bitcoin is required to be placed in locations near renewable sources. This provides them more control to strategically use those resources for Bitcoin mining. Therefore, the excess energy that isn’t required could be saved using the capabilities of Bitcoin miners. The grid operators wouldn’t have to put much effort into reducing energy release, as Bitcoin can handle those operations. Furthermore, with the rise in the efficiency of Bitcoin miners, a huge investment is forthcoming in developing renewable resources. 

Conclusion

Due to Bitcoin consuming huge amounts of energy, mining companies are trying to figure out energy-efficient solutions. Therefore, it is evident that bitcoin mining is in-route to becoming a superpower within a few more years.