‘It could be a key player’

The cryptocurrency problem is by now well known: Mining operations suck up valuable energy from the grid, creating a number of issues in search of wealth for their owners.

Communities are impacted by pollution, utilities are destabilized, and the use of dirty fuels continues. Counties, provinces, and countries are taking stands, banning crypto mining in part or altogether.

Others, however, are moving in the opposite direction, courting the industry that may account for 176 terawatt-hours of energy use each year — equal to the demand of Poland, according to Digiconomist. The figure is so high because of the electricity required by facilities to power computers that can run around the clock. They also need tons of cooling power to keep the machines from overheating, and that usually comes from vital water resources.

It’s quite the conundrum, though cryptocurrencies are adapting. In 2022, ethereum switched from an intensive proof-of-work consensus mechanism to a proof-of-stake system — and consequently dropped its energy consumption by 99.95%. Other platforms and advancements are moving in the same direction, but what of the most popular one?

“Bitcoin might not just adapt to a renewable world—it could be a key player in accelerating the adoption of green energy,” Techlomedia reported, noting that “its viability as an asset depends in part on solving these energy problems.”

The proving ground may be Texas. Solar and wind energy are boosting miners in the crypto-friendly state, and the operators may be able to give something back. Those forms of clean energy are intermittent, creating “inefficiencies in the grid[,] and excess energy is often wasted,” according to Techlomedia.

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Miners can help by buying up the surplus. The hope is that this kind of arrangement creates an incentive for investment in projects powered by such renewables. The outlet noted that before China banned crypto mining, the rainy season in Sichuan marked a peak for bitcoin miners fueled by hydropower.

“Small solar farms for example can use mining as a way to generate consistent revenue, making renewable projects more viable in remote areas,” Techlomedia added.

But bitcoin is banking on technological innovations such as alternative mining algorithms and hardware efficiency advancements rather than a fundamental transformation to create a sustainable future. The gamble is based on a core belief of adherents, who argue that PoW is essential to the blockchain’s security and decentralization, as Techlomedia put it.

This moment offers an opportunity for bitcoin to “lose its reputation as an environmental villain” and usher in an era of transparency, collaboration, and advocacy, per the outlet.

Will it survive?

“It depends,” Techlomedia concluded.

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