Bitcoin mining energy consumption debate is on the table yet again.
Bitcoin’s reign above $60K has reinvigorated debates surrounding negative environmental impact. Concerns regarding mining the cryptocurrency being harmful to the environment because it utilizes substantial energy have made rounds as experts continued to weigh in the matter.
The latest one to chime in the matter that has been making rounds was Bixin Group’s Mustafa Yilham. Bixin currently manages nearly 2.5% of the total global Bitcoin network through its mining operation. Yilham opined that a Bitcoin miner tries to use renewable excessive energy because they are environmentally friendly and cheaper.
He elaborated his first statement by explaining the migratory nature of Chinese miners wherein mining operations are mostly based in Sichuan. In winter, on the other hand, Bitcoin mining operations are moved to Xinjiang/Inner Mongolia where reportedly 43.4% of the energy on its electricity grid is renewable. During the rainy season, Sichuan produces “excessive hydro-power”. He Yiham concluded that,
“Bitcoin is probably one of the MOST Environmentally-friendly financial industries. Because we can migrate during seasons and maintain 100% renewable during summer and over 40% renewable during winter. The renewable rate will further increase soon.”
Bitcoin Mining and Gas-flare Recapturing
Bitcoin mining is also helping resolve gas-flare issues. Here’s how:
Gas flaring has been a concerning issue to the oil and gas industry. A combustion of associated gas is flared into the air which is generated during the processing of natural gas. This byproduct can be captured by the Bitcoin who can then use it for energy instead of releasing it into the open door.
This is not the first time that Bitcoin’s strikingly high carbon footprint has been a matter of debate. By its very nature, Bitcoin mining needs a lot of electricity along with sophisticated devices. However, with regards to energy consumption, ARK Investment Management revealed that traditional banking consumed 2.34 billion gigajoules (GJ) per year while gold mining 500 million GJ. Bitcoin, on the other hand, consumes 184 million GJ, less than 10% and 40% of traditional banking and gold mining, respectively.
Further debunking the misperceptions, ARK’s research stated,
“Additionally, Bitcoin mining’s estimated dollar cost per GJ expended is 40 times more efficient than that of traditional banking and 10 times more efficient than that of gold mining.”