6 renewable energy sources that will power the future of Bitcoin mining

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Yes, Bitcoin mining consumes a lot of energy – around 110 terawatt hours per year, the energy equivalent of a small country. Considering that a single Bitcoin mining farm can run hundreds or thousands of mining rigs (roughly the equivalent of running a heater) all day, every day, it’s easy to see how this amount of energy. can be created. It’s also easy to see why keeping energy costs low is becoming the number one concern of Bitcoin miners.

The good news for Bitcoin’s large-scale mining operations is that the cheapest sources of energy are also the cleanest and most sustainable, such as wind, solar, and hydropower, all of which are less expensive. expensive than gas and coal. Additionally, the Cambridge Center for Alternative Finance estimates that 76% of miners are already using sustainable energy sources.

Yet, with the recent questions in the news regarding the source of Bitcoin’s energy use, and whether it can be sustainable in the future, there is still a long way to go to increase awareness and adoption of the sources. renewable energy.

If you are looking to start a mining operation, switch sources of electricity, or invest in a mining business and want to know more about where it gets its power, here are the top sources of renewable energy that will power the industry. in years. to come.

Solar energy

Solar energy is the most widely used renewable energy source and one of the simplest: capturing energy from the sun’s rays through photovoltaic cells in solar panels. They are easy to install and maintain, and require no drilling or mining, or anything to burn. Additionally, solar energy costs have only fallen in recent years, with the cost of electricity from large-scale photovoltaic (PV) solar energy falling by 82% between 2010 and 2019.

Recently, Square and Blockstream announced that they will invest in a $ 5 million fully solar-powered Bitcoin mining facility, as they say, in order to “show that a real-world renewable mining facility isn’t just possible, but also empirically prove that Bitcoin is accelerating the world towards a sustainable future.

Wind

Renewable energy from the wind is another option. This involves setting up large wind turbines in open areas to capture energy from the movement of air and transform it into electricity. Again, it’s a renewable energy source that doesn’t require drilling or mining – just building wind turbines – and the energy produced can power individual homes, cities, or even countries. Wind power costs one to two cents per kilowatt hour and prices tend to be fixed over long periods of time. The absence of fuel or user costs and the creation of jobs also make wind power attractive.

In the wake of China’s crackdown on Bitcoin mining operations, there is speculation that many miners may move to Texas, due to the abundant wind power available, as the wind provides more than 20% of the energy. from Texas.

Hydroelectricity

Harnessing energy from water currents is one of the oldest types of renewable energy sources (think waterwheels powering mills or the Hoover Dam). It is also an incredibly coherent source of energy, as continuously operating waterfalls can deliver constant, endless energy, whether it is picked up by rivers or simulated by dams and turbines. As for costs, it is also one of the cheapest at 85 cents per kilowatt hour, and over 90% of the energy can be converted into electricity.

One of the biggest advantages of Chinese mining operations before the nationwide crackdown was that they could harness the massive amounts of hydroelectric power at their disposal, especially in Sichuan Province, where during the rainy season. , 95% of the electricity can come from hydropower.

Geothermal

Salvadoran President Nayib Bukele made the news when he tweeted an invitation to Bitcoin miners to use their volcanic energy, which is actually geothermal energy, another renewable resource. Geothermal energy comes from heat stored in the earth’s crust, which can include energy that escapes through steam or even volcanoes. In 2020, geothermal energy has a capacity of 14,000 megawatts and is considered an abundant and constant source of renewable energy. Yet geothermal energy is only available in certain areas of the world where heat can rise to the surface, typically around tectonic plates.

Tidal energy and ocean energy

Harnessing tidal power or energy from the ocean is another renewable option similar to hydropower. Instead of running water, tide gauges installed at the tide line or turbines installed in the ocean below sea level capture the movement of water and transform it into electricity. Although adoption has been limited so far with few established sites, this option grows as technology improves and costs decline. However, it is incredibly promising: the world’s largest tidal power station in South Korea generates more than 500 gigawatt hours per year, or the equivalent of 862,000 barrels of oil.

Residual energy and biomass

Another renewable source is waste energy, where organic matter is broken down to create heat by incineration or by bacteria that break down organic matter. The heat created then drives steam turbines to produce electricity. This option can also help reduce the presence of landfills. Crypto firm 4New made the news when it announced it would set up a waste-to-energy plant that would power its facility.

How Bitcoin Mining Can Be A Renewable Source For Others

Bitcoin miners are not only looking to consume renewable energy sources, but also to be renewable energy sources. Some miners are able to sell their excess energy back to the grid. Others use the excess heat from their mining operations to power greenhouses and other local industries, and even to heat cities.

Whether consuming or providing, Bitcoin mining is sure to play a major role in creating a sustainable future.

Guest post by Abdumalik Mirakhmedov of Genesis Digital Assets

Co-Founder and Executive Chairman of Genesis Digital Assets, the world’s most experienced bitcoin miner. He is a seasoned technology investor and manager specializing in the digital assets and artificial intelligence sectors. He has over 15 years of management experience in public and private companies. Abdumalik combines his expertise and confidence in Bitcoin to create the world’s most successful cryptocurrency mining company.

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