Researchers have discovered that using bitcoin mining as a way to accelerate the move to green energy sources may not be as effective as its advocates claim.
What's happening?
Scientists at Witten/Herdecke University looked at how bitcoin and cryptocurrency are impacting the transition to green and renewable energy sources, according to a media release. What they found was that while cryptocurrency may help expedite the transition to renewable energy in the short term, it could hinder the transition over the long term and cause considerable environmental damage and pollution along the way.
According to the study, proponents of bitcoin mining claim that shunting surplus renewable energy that the grid doesn't need into the process of harvesting cryptocurrency will help accelerate the implementation of renewable energy by adding a higher profit margin for power companies, incentivizing them to add more green energy to their portfolios.
However, the study suggests that while the focus on renewable energy could reduce planet-warming gas pollution, it creates other major problems that won't help address environmental concerns. The cheaper energy could lead to an increase in people mining crypto, which would create more electronic waste.
On top of that, being able to shunt excess energy off into cryptomining could disincentivize companies from investing in long-term clean-energy solutions, like storage technologies, grid improvements, and better infrastructure, while also not providing enough incentive to have those companies move away from dirty forms of energy on top of the renewable ones.
"In the long term, Bitcoin mining could slow down the actual goal of the energy transition — the switch to renewable energies," says Maximilian Gill, one of the researchers on the project.
Why is bitcoin's energy impact important?
The cryptocurrency industry is currently in a boom, but scientists have continued to express serious concerns about its impact. The process of mining bitcoin and other digital currencies is incredibly energy-intensive, sucking up significant chunks of power. In Iran, illicit crypto mining has been linked to blackouts in Tehran, the nation's capital.
And in the European nation of Georgia, officials have asked residents to cease crypto operations because of the massive strain it puts on the grid.
These operations frequently rely on dirty energy sources and take resources away from citizens who need the power.
|
Do you think we use too much plastic in America? Click your choice to see results and speak your mind. |
Definitely 👍 What's being done to help?
Cryptocurrency miners like HIVE Digital Technologies have been pushing to include more renewable energy in their operations, and countries like El Salvador have built entire green industries around their crypto efforts.
TCD Picks » Upway Spotlight
💡Upway makes it easy to find discounts of up to 60% on premium e-bike brands
However, as this study shows, there's still plenty more to be done here to make sure bitcoin mining is done in a way that does not bring with it too many environmental downsides and risks.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
