You must have heard stuff like “Bitcoin mining is doubling the rate of climate change.” Or “Bitcoin mining will soon exhaust all the fossil fuels.” Undeniably, Bitcoin mining consumes quite a lot of energy. But are these headlines flashing on your screen true?
The aim of BTC mining is to verify new transactions and in turn, get the reward of the coins generated consequently through ‘proof of work’. It is analogous to the mining of earth minerals in the sense that crypto mining uses electrical energy while mineral miners use physical energy. This intensive need for electrical energy impels crypto miners to search for cheap sources of energy. As a result, they generally go for surplus energy or sustainable energy sources.
Using Surplus Natural Gas for Bitcoin Mining
Tons of natural gas is burned down due to the absence of economic ways of transportation. This process is called flaring and it causes a lot of wastage in name of waste management. Miners have now innovated ways to use this surplus natural gas for mining.
Use of green energy in Bitcoin Mining
Last year China banned all sorts of domestic crypto mining. Around the same time, Tesla abandoned the plan of accepting Bitcoin as a payment option. The reason both gave was excessive usage of fossil fuels. Owing to this, most blockchain owners are encouraging miners to use renewable energy sources.
Renewable energy sources produce surplus energy that gets wasted if not used immediately. This energy is being monetized and being used in crypto mining.
Etherium is upgrading to a less energy-hungry system called proof of stake. Several other coins are taking similar initiatives. Efforts are being made at multiple levels to make cryptocurrencies energy-efficient.