Bitcoin mining is on the verge of a dramatic change, as more than 56% of the total network is now being run on green energy sources. The transition is not only lessening the environmental footprint of Bitcoin, but according to tech investor and ESG specialist Daniel Batten, it is also encouraging the development of renewable energy.
Bitcoin mining is accelerating the dismantling of the main bottlenecks that hamper the proliferation of green energy. For instance, by purchasing electricity directly from the renewable projects that are stuck in the interconnection queues, Bitcoin mining may reduce the payback period for renewable projects from eight years to three and a half years, thereby making clean energy investments more worthwhile.
Furthermore, this variable demand has the added benefit of stabilizing the grids with renewable sources that are inherently variable, and hence instilling confidence in the grid operators who then feel secure to increase the solar and wind capacity.
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Heating accounts for half of the global energy consumption, and a large share of it is still done by burning fossil fuels. One of the ways in which the waste heat from BTC mining can be repurposed as a clean energy alternative is through district heating. For example, the mining company MARA supplies heat to the residents of Helsinki.
Several brands now manufacture BTC heaters for households, and the industrial sector is also a beneficiary. For instance, in the Netherlands, a solar-driven Bitcoin mining platform is being used to generate heat for greenhouses.
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BTC mining is also a source of funding for the development of renewable energy technologies, such as the revival of Ocean Thermal Energy Technology (OTEC). Besides, Bitcoin mining is one of the solutions to the three main carbon-intensive activities: gas peaker plants, landfill methane, and oil field flaring. Some innovative companies use what would otherwise be wasted primary emissions to mine Bitcoins, thus preventing it from being released and contributing to emissions.
In short, the mining is on the way to being a major factor in the extension of sustainable energy by removing systemic barriers to climate progress. Thanks to its fresh ways of utilising renewable energy and lowering methane emissions, Bitcoin is ready to be an important player in creating a sustainable energy future.
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