Green energy in bitcoin mining
Crypto mining concept
It is possible to obtain crypto tokens without purchasing them in a cryptocurrency exchange. The concept which enables you to do so is called crypto mining. Many people are own cryptocurrencies such as Bitcoin, Ether and Dogecoin through mining with the help of their own computers. In crypto mining you solve cryptographic equations using high-powered computers. The process involves verifying data blocks and adding transaction record to a blockchain.
Power consumption in crypto mining
In crypto mining high-performance computing is required and it leads to high electricity consumption. Due to low capacity factors it is presumed that renewable energy sources such as wind and solar are not suitable for crypto mining. However, bitcoin miners are all set to prove that they can help in clean energy transition.
Tesla’s bitcoin promotion
Global electric carmaker Tesla announced in February 2021 that it had bought USD 1.5 billion bitcoin and would be accepting it for payment of cars. Following the news, prices of cryptocurrencies rose across the world. But apprehensions about massive carbon dioxide emission due to bitcoin mining also appeared in the media. Reports suggested that carbon dioxide emission in a year due to bitcoin mining is comparable to yearly emission of countries such as Jordan and Sri Lanka.
Survey by Global Bitcoin Council
A voluntary organization, Global Bitcoin Council conducted studies on power consumption pattern by mining companies. The survey reveals that in the quarter ending in June 56% of energy in global bitcoin mining was from renewable sources. Bitcoin mining consumes 0.1 % of global energy consumption. The wastage of electricity in bitcoin mining is also negligible.