Time and again, there have been many debates on the use of energy for Bitcoin mining. Analysts and critics have always spoken against mining because of its enormous carbon footprint. On the other hand, we have influencers like Jack Dorsey, Elon Musk, and many other Bitcoiners who believe that BTC mining is the solution. They argue that Bitcoin mining is meant to boost the use of renewable energy resources. And it will actually cut down on the carbon footprint we have on the environment.
The flaw in their Bitcoin mining arguments!
Yes! Bitcoin mining does incentivize the use of renewable energy resources, but that doesn’t mean that it is a good idea. The same energy could be used to cut down on the footprint of some other operation which is essential. As of now, most of the Bitcoin being mined uses non-renewable energy resources and has a huge carbon footprint. According to a research report, the amount of electricity used for BTC mining is 66 times now as compared to 2015. Considering that number, it is obvious why Bitcoin mining is not a good idea overall.
We also have to take into account the fact that the prices of renewable energy resources are dropping to promote their use. And if companies sign long-term agreements to use such resources to mine BTC, then it is obvious that the use of energy will be directed there. And other essential stuff that also needs electricity may have to do with the use of traditional resources of energy. Since Bitcoin mining is also not very stable and has its own problems, it is empirical that banks will also have to charge more interest to businesses providing energy to mining farms.
China is the biggest bitcoin mining country globally. We have already seen what kind of impact it has on the hash rate of Bitcoin globally. And most of its mining is done using electricity coal mines produce. This has one of the biggest carbon footprints globally. And the countries that were known for the use of renewable energy resources for Bitcoin mining produce less than 1% of the total coins.
Putting it to better use!
There are many industries barring BTC mining that produce serious carbon footprints. There are chemical production, steel industries, and more. So, the renewable energy resources that BTC miners can use might be put to better work here. The idea is not to incentivize the use of renewable energy resources using Bitcoin mining but to make stop the wastage of electricity in what form may it be. There is always a better use case!
What are your thoughts on the use of renewable energy resources for Bitcoin mining? And do you think that there are better use cases of the same energy? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.